A new study from real estate brokerage Axios finds that while most Americans are familiar with mortgage interest rate changes, they’re not quite sure how much.
“The public is largely unaware that rates are typically higher than they were during the financial crisis and the Great Recession, and they’re generally unaware that the rates have risen over the past three decades,” the report said.
The analysis comes amid a rising number of mortgage defaults, which have been on the rise since the end of the recession.
“There is considerable variation in how many people are losing their homes,” said David M. Lips, an economist at the Boston Consulting Group.
“People don’t know how much they are paying on a mortgage, they don’t even know how many years they have paid.
That’s a problem.
They need to have more information.”
The study, which was conducted in conjunction with the Mortgage Bankers Association and the National Association of Realtors, also found that the average mortgage payment was up a little more than $4,000 from the year before.
The average annual interest rate on a five-year fixed-rate mortgage was 3.9 percent in 2015.
Mortgage rates have been rising, on average, since 2008.
And they’re likely to keep rising, especially for people who live in cities like New York, Miami and Austin.
“A big problem in housing is that people don’t understand that mortgage rates have gone up for the past 10 years, and for most of the next decade, the rate is likely to go up more slowly than it did in 2008,” said Jennifer Henningsen, the co-author of the report.
“What they don