The average 30-year fixed mortgage rate climbed to 7.04 percent this week, up from 6.87 percent a month ago, according to Freddie Mac's weekly survey.
That is the highest reading since November and a tough pill for anyone who waited for relief that never came.
On a $400,000 loan, that jump adds roughly $45 to the monthly payment compared with a month ago.
Compared with the 3 percent rates of 2021, buyers today are paying about $950 more every month for the same house.
Stubborn inflation readings have pushed back expectations for Federal Reserve rate cuts.
The Fed does not set mortgage rates directly, but its policy stance shapes the 10-year Treasury yield, which mortgage lenders track closely.
When traders decide rate cuts are further off, mortgage rates move up fast.
Renters are not escaping the squeeze either.
Asking rents rose 0.9 percent year over year in March, and in many metros, landlords are passing along higher property taxes and insurance costs.
For anyone trying to save for a down payment while renting, the math gets tighter every month.
The average APR on new card offers sits near 24 percent, and balances keep climbing.
If you are carrying $6,000 in debt at that rate, you are paying about $120 a month in interest alone, money that could otherwise go toward a home fund.
A pre-approval locks in your borrowing power and shows sellers you are serious, and it costs you nothing but a hard credit pull.
Rates vary by 0.25 to 0.5 percentage points between lenders on the same day, and on a $400,000 loan, half a point is about $120 a month.
Paying one point upfront, typically 1 percent of the loan, can lower your rate by about 0.25 percent.
Do the break-even math: if you plan to stay put for at least five years, it can pay off.
Fourth, consider an adjustable-rate mortgage if you expect to move or refinance within seven years.
ARM rates today run about 0.5 to 0.75 points below fixed rates, though they carry risk if rates stay high when the fixed period ends.
Finally, do not drain your savings for a down payment.
Lenders like to see reserves, and you will need cash for closing costs, moving, and the first round of repairs.
A 10 percent down payment with a strong emergency fund beats 20 percent down with nothing left over.
The uncomfortable truth is that nobody knows where rates go next.
The Fed meets again in June, and one cooler inflation report could shift the mood quickly.
Waiting for a specific number is a gamble, not a plan.
For most buyers, the better move is to buy what you can afford at today's rate and plan to refinance later if rates fall.
A slightly higher payment now beats being priced out of a market that keeps climbing.
Final Thoughts
Just run your own numbers, not the ones a lender waves at you in a hurry.