Scary times hit mortgage shoppers

With mortgage rates rising at a record rate, it's become a scary time for mortgage shoppers.

Homebuyers got blindsided by an interest rate hike of more than half a percentage point Thursday, the biggest increase in more than 26 years. Now, many shoppers don't know whether they should scramble for a loan or wait on the sidelines.

Mike Brewer and his wife, Laura, shopped for a home for months before they finally gave up and decided to build a new place in Warrenton, Va. Since the new home won't be ready until November, however, they can't lock in a mortgage until September, said Brewer.

With rates rising by a percentage point over the past two months, they're already looking at an extra $200 a month -- and climbing -- on a 30-year mortgage.

"We had been hopeful that rates would stay low through 2013, which is why we made the jump when we did," said Brewer, who works as an IT director for a construction company. "Had we known the rates would spike, we might have changed our minds." (more)

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