For the first time since 2011, the 30-year mortgage rate has topped 5%. What’s the difference between a 4% and a 5% mortgage rate? $213,862 (on a $1M loan over 30 years, see below). That’s how much more the exact same house will cost you today due to higher interest rates. You need to come up with an additional $600 per month, or $7,128 annually. In a high tax state such as California, one must make an additional $12,000 annually (approximately) to net $7,128. So it’s a thousand bucks a month that will no longer goto travel, dining out, sporting events, concerts, Amazon, etc.
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