H
ome buyers may need to adjust their expectations as mortgage rates continue to rise. According to the National Association of REALTORS' deputy chief economist, Jessica Lautz, rates are unlikely to drop anytime soon and have already reached levels not seen in 16 weeks. This week's average rate of 6.89% means that someone buying a $400,000 home with 20% down would need to plan for a monthly mortgage payment of $2,105, while those with 10% down would pay $2,369.

    Lautz advises buyers to consider all their monthly costs, not just mortgage rates, when determining what they can afford. Home prices are still rising in most markets, and other expenses like homeowner association fees, insurance, and maintenance costs should be factored into the budget. Buyers may also be able to save thousands by shopping around for multiple quotes from lenders.

    Freddie Mac reports that 30-year fixed-rate mortgages averaged 6.89% this week, up from last year's average of 7.03%. Fifteen-year fixed-rate mortgages averaged 6.03%, higher than the 6.36% seen at this time last year.