New data collected from LendingTree users puts a dollar amount on how rising rates can affect the cost of a mortgage. Specifically, the firm calculated the difference between average monthly mortgage payments on 30-year, fixed-rate loans in each state based on average APRs in January and April 2022. Here are the key findings:
- 30-year, fixed-rate mortgage APRs have increased by an average of 1.46 percentage points across all 50 states since January. In January, the average APR across the 50 states was 3.79%. In April, it was 5.25%.
- Nationwide, rising APRs are causing new mortgage payments to increase by an average of $258.57 a month—that monthly increase amounts to an average of $3,102.82 in extra costs each year and an average of $93,084.60 in extra costs over the lifetime of a 30-year loan.
- Mortgage payments increased the least in Ohio, West Virginia and Kentucky.
- California, Washington and Massachusetts saw mortgage payments increase the most.
“Though mortgage APRs have already significantly increased since the start of the year, they may rise even further by 2023, said Jacob Channel, LendingTree’s senior economic analyst and report author. “This is especially true given that the Federal Reserve is poised to raise the Fed funds rate multiple times this year (including what is likely to be a 50 basis point hike announced this week) which will likely put even more upward pressure on mortgage rates.”
To view the full report and state rankings, click here.