With mortgage rates continuing to rise, perspective buyers may need to act sooner rather than later if they are considering buying a permanent or vacation home.

“Every time the interest rates go up, you eliminate a group of people who can no longer afford to buy a house,” Don Frommeyer, a mortgage broker at Marine Bank in Indianapolis, told realtor.com®. “Some people may have to rent for a period of time until they make more money, or buy a smaller house.”

Mortgage rates are at their highest levels in more than four years. Since the Federal Reserve said it is likely to raise its short-term interest rates this year, that could prompt mortgage rates to move even higher starting this month.

As rates increase, buyers will face additional costs over time. For example, realtor.com® states that a $300,000 house with a 30-year fixed-rate mortgage and 20 percent down payment, will have a mortgage rate of $142 a month as it increases from 4 percent to 5 percent. Calculated over the life of the loan, that is more than $51,000 extra.

Buyers who thought they could hold off on buying because mortgage rates are going to stay low are now realizing the time to buy is now before rates increase even more. Home buyers who are concerned about rising rates may want to lock in with a lender, which guarantees the current rate for a set period of time.