September 24th, 2008

Mortgage Applications Down 10.6% – Interest Rates Up

As expected, with continued strain on the economy, fewer people are buying homes. The average interest rate across banks has been raised from 5.82% to 6.08%.

Paying 0.26% more for a mortgage adds about $16 per month for every $100,000 of your loan ($588.03 vs $604.70 per month on a $100,000 loan). Over the lifetime of a loan that means you’ll spend more than $6,000 extra.

Source: http://www.mortgagebankers.org/NewsandMedia/PressCenter/65261.htm