A Historical Timeline of Mortgage Rates

Are you working with clients who are feeling unenthusiastic or on the fence about their chances to own a home because of interest rates? As we know, rates hovered around 4% for the majority of 2017. Since January interest rates have slowly risen, and experts predict that rates will increase even more through the end of the year. In reality, an interest rate in the mid 4’s to low 5’s is still pretty good! Don’t let the interest rate predictions stop them from purchasing their dream home this year. Let’s take a stroll down interest rate history lane to get some perspective.

Thanks to Freddie Mac, our interest rate history is pretty telling. In the 1970’s the average interest rate was 9.1%. In the 80’s, the US was pushed into a recession caused by an oil embargo which caused hyperinflation, and as a result, interest rates averaged 13.7%. Even as recent as the early 2000’s average interest rates were at 8.1% until the crash. Today, affordability and interest rates are still relatively great. The benefits of owning a home including payment stability, potential tax benefits and more often outweigh perceived downsides. And keep in mind, if interest rates drop, your clients will have the option to refinance to capitalize on those savings.

To download a copy of this infographic that you can use in your marketing, click here.

 


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.