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Markets Where Homebuyers Face Highest Interest Rates, Mortgage Fees

Information by Clever found that in 2018 borrowers paid interest rates ranging from 4.24% to 7.71%, with homeowners in Maine, West Virginia, and Ohio reporting interest rates over 7%. 

Maine was found to have the highest average interest rate of 7.71%, followed by the 7.39% rate in West Virginia, and Ohio’s 7.07% rate. 

Borrowers in Hawaii paid the most in average mortgage fees at $6,967.89. The District of Columbia had the second-highest average mortgage fees at $5,395.68, and California was a distant No. 3 at $3,614.08.

Homeowners in Hawaii, however, have the lowest average interest rate at 4.25%.

A report by Financial Planning found Hawaii County, Hawaii, to be most at risk to face a bubble. 

Hawaii County has a media home price of $403,625 and annual wages of $43,810. Bristol County, Massachusetts, came in at No. 2 with a median sales price of $300,000 and median wages of $50,973. 

Mortgages, overall, did not have a good week, according to the Mortgage Bankers Association. Mortgage applications fell 0.1% from the prior week for the week ending November 1. 

The refinance index grew 2% from the prior  week and was 144% higher than last year. The purchase index, though, decreased 3% from the week prior. 

"U.S. Treasury yields once again exhibited some intraweek volatility before declining sharply toward the end of the week. As a result, mortgage rates decreased, with the 30-year fixed rate falling below 4% again," said Joel Kan, AVP of Economic and Industry Forecasting. "In response to the lower rates, refinance applications climbed 2%, as homeowners with larger loan balances helped to keep the average refinance loan size elevated. Purchase applications fell slightly last week but remained almost 7% higher than a year ago." 

Refinances accounted for 59.5% of total applications, which is an increase from 58% last week. The share of FHA loans of total applications fell to 11.8% from 12% for the previous week and the VA share is 12%—a marginal increase from the prior week’s 11.8%. 

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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