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%.