Mortgage rates reach 7-year high

Mortgage rates reach 7-year high

LAKE CHARLES, LA (KPLC) - If you're looking to buy a home, you may want to do so sooner than later.

The average rate for a 30-year fixed mortgage is now 4.61 percent, up from 4.02 percent this time last year.

Craig Boudreaux, a loan officer with Louisiana Mortgage Associates, said rates are rising because of a stronger economy.

"The federal government had not raised rates for years because the economy was doing poorly, so that kept the rates down artificially," Boudreaux said. "Now that our economy is going up, the Fed has raised the rates a few times so now our interest rates are on the rise."

Boudreaux said even though rates are at a seven-year high, the interest rates are still the fourth to fifth lowest in the history of interest rates.

"I still think on a 30-year mortgage, a rate between the fours and fives for a government loan is still a super deal," Boudreaux said. "When I bought my first house in the 1990's, with a good credit score, it was 9.9 percent interest rate."

So how much would it cost for you to buy a home?

Here's a link to where you can calculate your mortgage: https://www.mortgagecalculator.org/

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