Buying a home? Here's what rising mortgage rates will cost you

Last Updated Oct 16, 2018 8:35 AM EDT

Mortgage rates are jumping, delivering a one-two punch to potential buyers already dealing with home prices that have risen sharply over the past few years.

"There's no doubt that, with rising interest rates, homebuyers are going to be increasingly stretched to afford homes that have become extremely expensive in the past few years," said Aaron Terrazas, senior economist with real estate website Zillow, which just released an analysis of the impact of rising mortgage rates.

"Monthly mortgage payments for the typical home are 15.4 percent higher than they were in August 2017. The median home value is 6.5 percent higher over the past year. For someone buying the median U.S. home, their monthly mortgage payments are $118 higher, or $1,416 each year," said the report.

Zillow noted that higher mortgage payments "reflect the combination of increased home values as well as the higher interest rates for buyers."

Indeed, mortgage giant Freddie Mac on Friday reported that the rate for 30-year fixed mortgages has hit a seven-year high -- and experts expect home-loan rates to continue rising. Interest rates tend to increase in response to inflation, which is picking up steam for the first time in decades.

Although no one currently predicts the sort of rapid wage and price acceleration that occurred during the 1970s and early 1980s, U.S. economic growth is now high enough to make inflation a mounting concern.

Terrazas expects that rates on 30-year fixed-rate mortgages, which jumped 0.19 percentage points Friday to 4.9 percent, will creep up another tenth of a percentage point before year-end and will rise to 6 percent by the end of 2019. Although these rates are still relatively modest in historic terms, 6 percent would be a near doubling of the low rates buyers enjoyed in the wake of the Great Recession.

Notably, even a modest rise in interest rates has a big impact on homebuyers, particularly in high-cost markets, adding hundred of dollars onto the monthly cost of a mortgage.

For potential buyers, the best advice for dealing with this rising-rate trend is to work on the two things in your control -- your credit rating and your down payment. Consumers with a top credit score and with at least 20 percent of the purchase price as a down payment get the lowest rates available, said Terrazas. Those with poor credit and less-substantial down payments are likely to borrow at considerably higher rates, which could push affordability out of range.

On the bright side, the ultra-hot housing market of the last few years appears to have cooled somewhat, which means fewer homes are receiving multiple offers and less need to bid above the asking price to get the house you want.

How much might rising rates affect you? Here's a look at median home prices in all 50 states, per the experts at Zillow, and the monthly payment for the average mortgage based on today's 4.9 percent rate versus the predicted 6 percent. This shows how much payments would change each month and over the life of the loan. (These figures assume that buyers made a 20 percent downpayment and financed just 80 percent of the total home price.) 

Here are the state-by-state findings, listed alphabetically:

Alabama

Median home price: $126,600

Mortgage: $101,280

Cost @ 4.9 percent: $537.52

Cost @ 6 percent: $607.22

Net monthly increase: $69.70

Total lifetime increase: $25,092

Alaska

Median home price: $307,600

Mortgage: $246,080

Cost @ 4.9 percent: $1,306.01

Cost @ 6 percent: $1,475.37

Net monthly increase: $169.36

Total lifetime increase: $60,969.60

Arizona

Median home price: $240,300

Mortgage: $192,240.00

Cost @ 4.9 percent: $1,020.27

Cost @ 6 percent: $1,152.58

Net monthly increase: $132.31

Total lifetime increase: $47,631.60

Arkansas

Median home price: $121,800

Mortgage: $97,440

Cost @ 4.9 percent: $517.14

Cost @ 6 percent: $584.20

Net monthly increase: $67.06

Total lifetime increase: $24,141.60

California

Median home price: $539,400

Mortgage: $431,520

Cost @ 4.9 percent: $2,290.14

Cost @ 6 percent: $2,587.18

Net monthly increase: $297.04

Total lifetime increase: $106,934.40

Colorado

Median home price: $364,600

Mortgage: 291,680

Cost @ 4.9 percent: $1,548.02

Cost @ 6 percent: $1,748.77

Net monthly increase: $200.75

Total lifetime increase: $72,270

Connecticut

Median home price: $238,600

Mortgage: $190,880

Cost @ 4.9%: $1,013.05

Cost @ 6 percent: $1,144.42

Net monthly increase: $131.37

Total lifetime increase: $47,293.20

Delaware

Median home price: $231,200

Mortgage: $184,960

Cost @ 4.9 percent: $981.63

Cost @ 6 percent: 1,108.93

Net monthly increase: $127.30

Total lifetime increase: $45,828

District of Columbia

Median home price: $567,400

Mortgage: $453,920

Cost @ 4.9 percent: $2,409.07

Cost @ 6 percent: $2,721.48

Net monthly increase: $312.41

Total lifetime increase: $112,467.60

Florida

Median home price: $224,600

Mortgage: $179,680

Cost @ 4.9 percent: $953.61

Cost @ 6 percent: $1,077.27

Net monthly increase: $123.66

Total lifetime increase: $44,517.60

Georgia

Median home price: $175,500

Mortgage: $140,400

Cost @ 4.9 percent: $745.14

Cost @ 6 percent: $841.77

Net monthly increase: $96.63

Total lifetime increase: $34,786.80

Hawaii

Median home price: $615,000

Mortgage: $492,000

Cost @ 4.9 percent: $2,611.18

Cost @ 6 percent: $2,949.79

Net monthly increase: $338.61

Total lifetime increase: $121,899.60

Idaho

Median home price: $232,400

Mortgage: $185,920

Cost @ 4.9 percent: $986.73

Cost @ 6 percent: $1,114.68

Net monthly increase: $127.95

Total lifetime increase: $46,062

Illinois

Median home price: $174,300

Mortgage: $139,440

Cost @ 4.9 percent: $740.05

Cost @ 6 percent: $836.01

Net monthly increase: $95.96

Total lifetime increase: $34,545.60

Indiana

Median home price: $133,700

Mortgage: $106,960

Cost @ 4.9%: $567.67

Cost @ 6 percent: $641.28

Net monthly increase: $73.61

Total lifetime increase: $26,499.60

Iowa

Median home price: $138,500

Mortgage: $110,800

Cost @ 4.9 percent: $588.05

Cost @ 6 percent: $664.30

Net monthly increase: $76.25

Total lifetime increase: $27,450

Kansas

Median home price: $134,200

Mortgage: $107,360

Cost @ 4.9 percent: $569.79

Cost @ 6 percent: $643.68

Net monthly increase: $73.89

Total lifetime increase: $26,600.40

Kentucky

Median home price: $138,800

Mortgage: $111,040

Cost @ 4.9 percent: $589.32

Cost @ 6 percent: $665.74

Net monthly increase: $76.42

Total lifetime increase: $27,511.20

Louisiana

Median home price: $145,300

Mortgage: $116,240

Cost @ 4.9 percent: $616.92

Cost @ 6 percent: $696.92

Net monthly increase: $80.00

Total lifetime increase: $28,800

Maine

Median home price: $222,000

Mortgage: $177,600

Cost @ 4.9 percent: $942.57

Cost @ 6 percent: $1,064.80

Net monthly increase: $122.23

Total lifetime increase: $44,002.80

Maryland

Median home price: $282,500

Mortgage: $226,000

Cost @ 4.9 percent: $1,199.44

Cost @ 6 percent: $1,354.98

Net monthly increase: $155.54

Total lifetime increase: $55,994.40

Massachusetts

Median home price: $395,300

Mortgage: $316,240

Cost @ 4.9 percent: $1,678.37

Cost @ 6 percent: $$1,896.02

Net monthly increase: $217.65

Total lifetime increase: $78,354

Michigan

Median home price: $143,100

Mortgage: $114,480

Cost @ 4.9 percent: $607.58

Cost @ 6 percent: $686.37

Net monthly increase: $78.79

Total lifetime increase: $28,364.40

Minnesota

Median home price: $225,100

Mortgage: $180,080

Cost @ 4.9 percent: $955.73

Cost @ 6 percent: $1,079.67

Net monthly increase: $123.94

Total lifetime increase: $44,618.40

Mississippi

Median home price: $122,500

Mortgage: $98,000

Cost @ 4.9 percent: $520.11

Cost @ 6 percent: $587.56

Net monthly increase: $67.45

Total lifetime increase: $24,282

Missouri

Median home price: $153,000

Mortgage: $122,400

Cost @ 4.9 percent: $649.61

Cost @ 6 percent: $733.85

Net monthly increase: $84.24

Total lifetime increase: $30,326.40

Montana

Median home price: $225,100

Mortgage: $180,080

Cost @ 4.9 percent: $955.73

Cost @ 6 percent: $1,079.67

Net monthly increase: $123.94

Total lifetime increase: $44,618.40

Nebraska

Median home price: $157,800

Mortgage: $126,240

Cost @ 4.9 percent: $669.99

Cost @ 6 percent: $756.87

Net monthly increase: $86.88

Total lifetime increase: $31,276.80

Nevada

Median home price: $275,200

Mortgage: $220,160

Cost @ 4.9 percent: $1,168.45

Cost @ 6 percent: $1,319.97

Net monthly increase: $151.52

Total lifetime increase: $54,547.20

New Hampshire

Median home price: $264,600

Mortgage: $211,680

Cost @ 4.9 percent: $1,123.44

Cost @ 6 percent: $1,269.13

Net monthly increase: $145.69

Total lifetime increase: $52,448.40

New Jersey

Median home price: $316,500

Mortgage: $253,200

Cost @ 4.9 percent: $1,343.80

Cost @ 6 percent: $1,518.06

Net monthly increase: $174.26

Total lifetime increase: $62,733.60

New Mexico

Median home price: $186,600

Mortgage: $149,280

Cost @ 4.9 percent: $792.27

Cost @ 6 percent: $895.01

Net monthly increase: $102.74

Total lifetime increase: $36,986.40

New York

Median home price: $280,000

Mortgage: $224,000

Cost @ 4.9 percent: $1,188.83

Cost @ 6 percent: $1,342.99

Net monthly increase: $154.16

Total lifetime increase: $55,497.60

North Carolina

Median home price: $173,500

Mortgage: $138,800

Cost @ 4.9 percent: $736.65

Cost @ 6 percent: $832.18

Net monthly increase: $95.53

Total lifetime increase: $34,390.80

North Dakota

Median home price: $202,100

Mortgage: $161,800

Cost @ 4.9 percent: $858.08

Cost @ 6 percent: $970.07

Net monthly increase: $111.99

Total lifetime increase: $40,316.40

Ohio

Median home price: $132,900

Mortgage: $106,320

Cost @ 4.9 percent: $564.27

Cost @ 6 percent: $637.44

Net monthly increase: $73.17

Total lifetime increase: $26,341.20

Oklahoma

Median home price: $119,300

Mortgage: $95,400

Cost @ 4.9 percent: $506.53

Cost @ 6 percent: $571.97

Net monthly increase: $65.44

Total lifetime increase: $23,558.40

Oregon

Median home price: $334,100

Mortgage: $267,280

Cost at 4.9 percent: $1,418.53

Cost @ 6 percent: $1,602.48

Net monthly increase: $183.95

Total lifetime increase: $66,222

Pennsylvania

Median home price: $168,500

Mortgage: $134,800

Cost @ 4.9 percent: $715.42

Cost @ 6 percent: $808.19

Net monthly increase: $92.77

Total lifetime increase: $33,397.20

Rhode Island

Median home price: $273,500

Mortgage: $218,800

Cost @ 4.9 percent: $1,161.23

Cost @ 6 percent: $1,311.83

Net monthly increase: $150.60

Total lifetime increase: $54,216

South Carolina

Median home price: $158,800

Mortgage: $127,040

Cost @ 4.9 percent: $674.24

Cost @ 6 percent: $761.67

Net monthly increase: $87.43

Total lifetime increase: $31,474.80

South Dakota

Median home price: $181,800

Mortgage: $145,440

Cost @ 4.9 percent: $771.89

Cost @ 6 percent: $871.99

Net monthly increase: $100.10

Total lifetime increase: $36,036

Tennessee

Median home price: $158,400

Mortgage: $126,720

Cost @ 4.9 percent: $672.54

Cost @ 6 percent: $759.75

Net monthly increase: $87.21

Total lifetime increase: $31,395.60

Texas

Median home price: $185,800

Mortgage: $148,640

Cost @ 4.9 percent: $788.87

Cost @ 6 percent: $891.17

Net monthly increase: $102.30

Total lifetime increase: $36,828

Utah

Median home price: $310,800

Mortgage: $248,640

Cost @ 4.9 percent: $1,319.60

Cost @ 6 percent: $1,490.72

Net monthly increase: $171.12

Total lifetime increase: $61,603.20

Vermont

Median home price: $195,400

Mortgage: $156,320

Cost @ 4.9 percent: $829.63

Cost @ 6 percent: $937.22

Net monthly increase: $107.59

Total lifetime increase: $38,732.40

Virginia

Median home price: $250,700

Mortgage: $200,560

Cost @ 4.9 percent: $1,064.43

Cost @ 6 percent: $1,202.46

Net monthly increase: $138.03

Total lifetime increase: $49,690.80

Washington

Median home price: $370,700

Mortgage: $296,560

Cost @ 4.9 percent: $1,573.92

Cost @ 6 percent: $1778.03

Net monthly increase: $204.11

Total lifetime increase: $73,479.60

West Virginia

Median home price: $95,300

Mortgage: $76,240

Cost @ 4.9 percent: $404.63

Cost @ 6 percent: $457.10

Net monthly increase: $52.47

Total lifetime increase: $18,889.20

Wisconsin

Median home price: $177,700

Mortgage: $142,160

Cost @ 4.9 percent: $754.48

Cost @ 6 percent: $852.32

Net monthly increase: $97.84

Total lifetime increase: $35,222.40

Wyoming

Median home price: $219,800

Mortgage: $175,840

Cost @ 4.9 percent: $933.23

Cost @ 6 percent: $1,054.25

Net monthly increase: $121.02

Total lifetime increase: $45,567.20