The Federal Reserve has announced that the interest rate will continue rising, and the mortgage rate will follow this increasing trend. This may not sound good to homebuyers. Lets take a look at how this will affect homebuyers. Assume that the loan amount is $350,000 and is a 30-year conventional mortgage. The mortgage rate a year ago was 3%, and the current rate has grown to 7%. Assume that you can reinvest your money at 9.5%.