Mortgage rates recently have been hovering around 5.25 percent, and most analysts expect them to go higher. Rising rates have a real and immediate impact on consumers.

If someone bought the average-priced single-family home in Denver and put 8 percent down?the average size of a down payment, according to the National Association of Realtors® (NAR)?they would have a mortgage of $255,688. The monthly principal and interest payments at 4.6 percent would be $1,335. At 5.25 percent, the monthly P&I payment rises by $76.59 to $1,412. And if rates rose to their historical average of 8.73 percent, the payments would rise 50 percent from their low to $2,001?another $666 per month.

The typical homeowner expects to stay in their home for 10 years, according to the latest research by the NAR. That means at 5.25 percent, a homeowner would pay another $9,191 in principal and interest payments from the low point. If rates hit 8.73 percent, the additional mortgage payment costs would be $79,920.

Most analysts think it is all but certain that rates are going to move higher. Reasons for rising rates include:

• China, Brazil and other countries worldwide, worried about inflation, already have started raising rates.
• Federal Reserve bank presidents now put the chances of the Fed raising its rates by year-end close to 100 percent, while earlier in February they put it at 25 percent.
• At the end of June, the Fed is scheduled to complete its ?quantitative-easing? program to keep rates low.

The message to a prospective homebuyer is clear?take advantage of low rates while you can. They may not be around much longer.

Mortgage Rate History