The average rate for a 30-year fixed-rate mortgage rose to 4.16%, up from 4.13% last week. A year ago, rates were sitting around 3.97%.

At the current interest rates, buyers will pay $21 more per month compared to a year ago, assuming a $241,000 price tag and 20% down payment. “I don’t think anyone welcomes higher interest rates, but it should not be a considerable deterrent to someone who really wants to buy a home,” said Keith Gumbinger, vice president of

Rates under 5% have been the norm for a decade. In 1996, the average rate was 5.67%, and in 1990 it was 10.13%.

Rising home prices, fueled by strong demand and tight inventory, have pinched buyers in recent years. Lower interest rates helped temper that rise, but as they move higher, borrowing becomes more costly and can reduce a buyer’s budget.  If rates remain at this level, some marginal buyers could be pushed out of the marketplace. We expect home prices to continue to rise in 2017 year, but at a slower pace than we saw this year.  Erin Lantz, vice president of mortgages for Zillow. “For most of the country, it’s still very affordable, by historical standards”

“The era of ultra-low interest rates is over,” said Lawrence Yun, chief economist of the National Association of Realtors. “Despite these moves, mortgage rates will not rise alarmingly.”