History of Mortgage Rates

When watching the mortgage market trying to decide when it is the right time to lock in an interest rate the increases and decreases that happen day to day, or even several times within one day, can be exciting and/or excruciating. Similarly when attempting to predict whether mortgage rates will rise or fall so you can pick the best time to buy or sell a home, or refinance an existing mortgage, watching the market can be a tricky thing. It is important to remember that no one can say for sure what will happen to home loan interest rates, and you have to do what makes you the most comfortable. A good question to ask yourself is would I be more upset if I missed a low mortgage rate now and had to pay a little more down the line, or if I got a slightly higher rate now and learned later I could have saved by waiting? It is a tough question that each person has to answer for him or herself, but these are situations almost every borrower finds themselves in because almost no one will be lucky enough to hit the exact low point in the market.

It might be helpful to see some of the hi and low points that mortgage interest rates have hit in recent history. Some of the numbers will probably make you feel very good about your current mortgage rate!

Mortgage Peaks and Valleys

When looking at average 30 year fixed rate mortgages (conventional, conforming loan through Freddie Mac) over the last 5 years the high point was in July of 2006 when rates reached 6.78%. Rates have stayed in the 5 - 6% from 2002 to the present, but were in the 7 - 8% range around the turn of the century. That might seem high by today's standards, but double digit mortgage rates were commonplace in the 1980s, reaching as high as 17.60% in February of 1982.

To learn more about current mortgage rates and the mortgage market contact an American Financial Resources loan consultant at 800-316-9508 or request a quote. You can also get started online using this website.