Welcome to the housing market’s ‘new normal’ — 7% mortgage rates and all

While it’s difficult to predict exact economic outcomes, here are a few things you should expect and prepare for in the ‘new normal’ housing market with the possibility of 7% mortgage rates:

1. Higher Monthly Payments: A rise in mortgage rates from 3% to 7% effectively more than doubles the interest cost of a loan. This increase will lead to higher monthly payments for new homebuyers and may push some potential buyers out of the market.

2. Stress on Current Homeowners