A fixed-rate 30-year mortgage in 2021 was at an all-time low of just 2.75%. Now, they are near 7%. CNBC shows that translates to $157,985 in total interest for 2021 mortgages but a staggering $463,512 for those in 2024. With sky-high prices and elevated interest rates, a new home is unattainable for many Americans.
Federal Reserve interest rate decisions affect the cost of mortgages. The Federal Reserve decisions affect demand for debt products like treasury bills and mortgage-backed securities. That shifting demand also affects the mortgage rates Americans pay for new mortgages.
