Last year's increase in mortgage rates

from Janet Yellen – Semiannual Monetary Policy Report to the Congress on Rap Genius

Meaning

Some perspective: rates on 30-year fixed-rate mortgages hit a low of about 3.5% in spring 2013. More recently they’ve been around 4.5%.

For a $250,000 loan, increasing the rate from 3.5% to 4.5% increases the monthly payment by $144, from $1,123 to $1,267. That’s an extra $1,728 per year, 5% of per capita disposable income, spent on mortgage payments that could be spent on other discretionary purchases

By historical standards, however, mortgage rates remain very low, as seen in this chart:

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