Buying a new construction home right now can feel like you’re getting a deal—especially when builders advertise interest rates that are significantly lower than the market. You might see something like a 4.5% FHA rate when typical rates are closer to 6.5%. On the surface, that’s a huge win for affordability.
Most homeowners don’t realize they’re sitting in a financial contradiction. They have a historically low mortgage rate, often around 3%, but at the same time they’re carrying credit card debt at 20% to 25%. That gap is costing them thousands of dollars in unnecessary interest every year. So why don’t they just refinance and roll that debt in?
Did mortgage rates just quietly cost you $10,000? That might sound dramatic, but in the last few weeks, that’s exactly what we’ve seen happen in the market.
Freddie Mac’s average 30-year fixed fell to 5.98% on February 26, then climbed to 6.38% by March 26. Freddie Mac also notes its PMMS survey is an average of applications from the prior Thursday through Wednesday, so it can lag very fast market moves. Rates are still slightly better than the 6.65% average from a year ago, but the recent spike matters for buyers, agents, and anyone shopping payment.
