At 8.6%, inflation has become a large bear. Not just as a big, hairy, snarling cause of bear markets, but the question of how everyone, including consumers, will bear up under, as rising prices have also lifted mortgage rates.
The latest report, through July 7, shows current average rates on a 30-year mortgage at 5.30%, according to a St. Louis Federal Reserve analysis of data from Freddie Mac. The National Association of Realtors says that mortgage payments have "spiked 51% from May 2021."
"Compared to one year ago, the monthly mortgage payment rose to $1,842 from $1,220, an increase of 51%," the organization wrote. "The annual mortgage payment as a percentage of income inclined to 24.4% this May from 16.9% a year ago. Largely due to higher home prices compared to modest gains in median family incomes and higher mortgage rates."
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