As mortgage rates churn higher, affording a new home purchase will become more challenging for some Americans. But financing costs remain extremely low compared to historical norms. And the five-basis-point increase over the past week would add about $6 a month to the cost of principal and interest on a median-priced home, according to Zillow’s Mortgage Calculator
Consumers seem to know that. Applications for purchase mortgages hit a nine-year high in the most recent week, even as rates ticked slightly higher, the Mortgage Bankers Association said Wednesday. Demand is strong, and many Americans who’ve been shut out of a hyper-competitive housing market for years may finally get their chance.