WACO, Texas — If you've been waiting for mortgage rates to drop before buying a home, you may be waiting a little longer.
The national average for a 30-year fixed mortgage is now over 7%, according to NerdWallet.
Daniela Rodriguez, a Waco real estate agent, said she's already hearing from buyers who had been holding out for lower rates.
"The ones that did wait, I got lots of phone calls in the last week and a half saying, 'Do we still have our rates? Can we still use them? Do we need to get pre-approved again?'"
A 7% mortgage rate is the interest paid to a lender to borrow money for a home. When that rate rises, so does the monthly payment. Nationally, the nearly one-percentage-point increase since February adds about $255 a month on a $400,000 loan.
Rodriguez said the core question for buyers right now comes down to affordability.
"The conversation really is, can you afford it? ... It's going to make a big difference to someone who maybe can afford $1,200 a month but can't afford $1,500 to $1,600 a month."
Rodriguez said she's seeing the biggest impact among first-time and mid-range buyers, especially those shopping for homes around $350,000 or less. Her advice: don't shop at the very top of your budget.
"We should have never been looking at the top of what you can afford, and we really always want to leave a cushion for things like that."
Real estate agents say they are unsure when rates will go down. The recommended next step for prospective buyers is to connect with a real estate agent to better understand their finances before house shopping.
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