Mortgage rates edge up, adding hundreds to buyers' monthly payments

Mortgage rates continued to climb this week, adding more financial strain on hopeful home buyers as they wade into the competitive spring and summer markets.

The 30-year fixed-rate mortgage averaged 5.3%, a rise from last week, when it averaged 5.27%, according to data released Thursday by Freddie Mac. This time last year, the 30-year rate was 2.94%.

The rate for the 15-year fixed-rate mortgage averaged 4.48%, down from last week's average of 4.52%. A year ago at this time, it averaged 2.26%. The five-year adjustable-rate averaged 3.98%, up from last week's 3.96%. A year ago at this time, it averaged 2.59%.

"Monthly payments have increased by more than 50% in just four months because of higher mortgage rates," said George Ratiu, a senior economist with Realtor.com. "While everyone is shocked by inflation of 8.3%, rent increases of 17% and home price increases of 14%, the impact of higher mortgage rates is even greater."

High prices and multiple-offer situations have made it almost impossible for first-time home buyers to purchase property this spring, said Michael Isaacs, the chief executive of GO Mortgage in Columbus, Ohio.

Rising mortgage rates compound that problem. Last year, rates hit a low of 2.5% in October and November, and they were at 3% last May, he said. The additional interest associated with higher rates is adding hundreds of dollars to mortgage payments.

"Now they're at 5.5%, that means the monthly principal and interest is now $600 higher today than it was last year for a $400,000 mortgage," Isaacs said.

Buyers with fixed budgets who are on the hunt for new homes have faced additional financial pain for months now, with rising costs for gasoline, groceries and other everyday goods affected by rising inflation.

But the pace of inflation could be...