How much rising mortgage rates could cost homebuyers in Colorado

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Published Sunday, July 10, 2022
by Samuel Stebbins, 24/7 Wall St. via The Center Square

Interest rates on mortgage loans are rising rapidly in the United States. As the Federal Reserve pursues an aggressive strategy of rate hikes to curb inflation, homebuyers are increasingly saddled with higher borrowing costs.

The national average 30-year fixed mortgage rate is now approaching 6 percent, up from just 3.79 percent in January. The rate increase could mean tens of thousands of dollars more in interest payments for new homebuyers this year.

A recent report published by loan platform LendingTree reviewed home sale and mortgage data to quantify the effect rising mortgage rates could have on homebuyers.

In Colorado, the average APR - annual percentage rate - on a mortgage rose from 3.72 percent in January to 5.18 percent in April. This increase means that a homebuyer who took out a mortgage in April will pay about $331 more per month in interest than one who took out a mortgage in January, based on the average mortgage amount of $382,571 across Colorado.

Accounting for both average home values and mortgage rates, the increase in interest rates from January to April for the typical homebuyer in Colorado will add up to $3,972 more in the first year alone and $119,165 over the lifetime of the 30-year mortgage - the fourth largest increase among states.

All data in this story is from the report Rising Mortgage Rates Could Cost Some Homebuyers More Than $100,000 Over Lifetime of Loans from LendingTree.

Rank

State

Extra amount paid over 30-year lifetime of mortgage ($)

Average APR, January 2022 ( percent)

Average APR, April 2022 ( percent)

Average mortgage amount, 2022 ($)

1

California

$146,441

3.70

5.09

493,578

2

Washington

$128,659

3.76

5.11

447,400

3

Massachusetts

$121,404

3.69

5.10

407,532

4

Colorado

$119,165

3.72

5.18

382,571

5

New Jersey

$117,029

3.62

5.08

379,914

6

Utah

$117,001

3.68

5.16

369,811

7

New York

$111,171

3.68

5.17

351,169

8

Oregon

$105,221

3.76

5.20

343,115

9

Hawaii

$104,225

3.73

4.88

427,901

10

Virginia

$102,478

3.81

5.18

352,105

11

Idaho

$102,215

3.76

5.26

319,046

12

Arizona

$101,399

3.91

5.32

333,636

13

Delaware

$101,231

3.69

5.18

320,533

14

Maryland

$101,075

3.77

5.15

342,355

15

Montana

$100,396

3.60

5.11

313,336

16

Nevada

$100,135

3.85

5.23

339,422

17

Alaska

$99,192

3.58

5.05

317,575

18

Florida

$96,397

3.76

5.25

303,884

19

Maine

$95,671

3.78

5.38

278,694

20

New Hampshire

$94,856

3.82

5.22

316,939

21

Vermont

$94,636

3.73

5.39

266,045

22

Rhode Island

$94,514

3.69

5.12

310,590

23

North Carolina

$94,047

3.76

5.21

304,239

24

Connecticut

$94,020

3.73

5.13

314,565

25

Illinois

$92,828

3.78

5.23

298,441

26

Texas

$92,011

3.80

5.21

306,217

27

Georgia

$89,852

3.84

5.24

299,992

28

Pennsylvania

$88,560

3.80

5.31

273,634

29

New Mexico

$87,967

3.87

5.44

260,309

30

Minnesota

$87,938

3.77

5.22

283,885

31

South Dakota

$86,748

3.53

5.12

257,301

32

North Dakota

$86,317

3.74

5.30

257,718

33

Nebraska

$85,939

3.74

5.29

259,503

34

Louisiana

$84,895

3.85

5.39

256,150

35

Wyoming

$83,873

3.85

5.22

284,989

36

Tennessee

$82,793

3.96

5.35

275,815

37

Kansas

$82,295

3.84

5.30

261,988

38

South Carolina

$78,680

3.91

5.29

264,716

39

Alabama

$77,830

3.91

5.40

242,175

40

Oklahoma

$77,722

3.84

5.36

237,849

41

Indiana

$77,283

3.90

5.42

236,701

42

Mississippi

$76,524

3.88

5.39

235,123

43

Michigan

$76,106

3.87

5.32

244,039

44

Arkansas

$75,914

3.81

5.25

246,672

45

Iowa

$74,874

3.84

5.34

233,618

46

Wisconsin

$74,813

3.89

5.34

240,729

47

Missouri

$72,939

3.99

5.46

229,615

48

Kentucky

$72,820

3.91

5.41

224,562

49

West Virginia

$72,292

3.86

5.47

207,300

50

Ohio

$71,837

3.94

5.33

241,517

 

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