How Today’s Mortgage Rates Compare to Historical Interest Rates
Many home buyers wonder how today’s rates compare with historical rates of the past and what the big deal is about rates going up or down slightly. This chart shows the average annual mortgage interest rate as tracked by Freddie Mac for the past 46 years.
The current 30-year fixed rate mortgage is right around 4.07%. Compare that with the historical 46-year average of 8.09% and rates still look phenomenal. Yes, they are up from a low of 3.65% in 2016…but nowhere near the high of 16.63% in 1981.
Often its hard to picture just how that pencils out. So, let’s compare the monthly principal and interest payment (not including taxes and insurance) on a $750,000 mortgage at each of these rates to see just how big of a factor the interest rate is.
@ the current rate of 4.07% – $3,720
@ the 46-year low of 3.65% – $3,611
@ the 46-year average of 8.09% – $5,550
@ the 46-year high of 16.63% – $10,478
Paying close attention to mortgage rates and timing your purchase can save you tens of thousands of dollars over the life of your loan.
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© Copyright 2019. Information and statistics derived from Northwest Multiple Listing Service.