Many homeowners are kicking themselves for not refinancing sooner now that mortgage rates are climbing, ABC News reports. “I was going to save $325 a month, and that covers all kind of things, from gas to groceries,” lamented one. “$325 is a lot of money.” And it’s money, economists say, that could have been used to boost consumer spending.
The Federal Reserve has already spent billions trying to drive down mortgage rates, which shot up to 4.91% this week from 4.5% in March. Experts say the Fed will need to do more to curb this upward swing and revitalize the economy. “This big increase in mortgage rates is something that will keep us awake at night,” said one strategist.