Ah ... remember the "good old days?" How about 1984, when 30 year fixed rates hit 13%+? OK, maybe not so good. From 1985 through most of 1991, the same 30 year rate dropped from 11% to around 9%, so maybe better. With a notable peak in 1994 of around 9%, there was a general slide down to the neighborhood of 7% in 1998.
The 30 year fixed rate ran back up from 1998 into 2000, to around 9%. Then it turned around and dropped to an amazing low, fluctuating around 6%. It continued to move around that 6% to 7% area all the way into the beginning of 2008. We were all pretty happy about those rates, and that's the period when a whole lot of homes were purchased and prices were rising.
From 2008 into 2009, rates hovered around between 5% and 6%, more at the high end than not. Then we were treated to the current slide to 4.2% to 5% for the last six months or so. Recent increases have received a lot of press. And, some analysts are now predicting a rise to just over 5%, with a holding pattern at that level through at least most of next year. However, all of the hand-wringing about this increase isn't really realistic, as it's still at the low end of more than 20 years of history.
So, if you haven't been able to buy a home in the last few months, but you want to, you're still in a period of mortgage interest rate heaven.
Casey Moseman, CMPS®, NMLS #177506
Direct: (702) 271-1274