Rising mortgage rates are hitting Americans' wallets. Here's how to adjust your housing budget

Abstract

"As mortgage rates go up, it raises the cost of buying a home with a mortgage," explained Danielle Hale, chief economist at Realtor.com. "For many homebuyers, higher mortgage rates equal a higher monthly cost, especially for those taking out a large mortgage." More from Invest in You:The big risks in buying a house sight unseen5 steps you can take now to prepare your finances for a recessionHow to save money on summer cooling bills as energy prices rise The rate for a 30-year fixed mortgage is now 5.65%, according to Mortgage News Daily, up from 3.29% at the start of the year. At the current rate, the cost of a 30-year fixed mortgage on a $450,000 home means $2,078 in monthly payments, if you put down 20%, according to Realtor.com's calculator. Shelling out money ahead of time by buying what are termed "Mortgage points" can lower your interest rate. Each point costs 1% of the mortgage amount and typically lowers the rate by 0.25%, according to Bankrate. "Most lenders will give you the best execution rate." On the flipside, you can lower the final cost of the home if you get a 15-year fixed mortgage instead of a 30-year fixed loan, Brunker said. Make sure you'll be able to afford those payments when the time comes, even if you think mortgage rates will eventually go down and give you the opportunity to refinance.