Monday, June 16, 2014

Money Monday!! Historical Mortgage Rate Perspective, by blog contributor Rob Smee

Historical Mortgage Rate Perspective

In today’s society it is easy to become drawn into the short-term data when you’re preparing to make the largest purchase of your life.  So let’s take just a minute to put mortgage rates into perspective.  If you had to guess, what would you say the overall national average for mortgage rates (30-year Fixed) would be dating back to 1972?  4%? 5%? 6%? 7%?  If we take the historical average mortgage rates from Freddie Mac’s data dating back to 1972 and average them over the course of the last 41 years, we arrive at an average mortgage rate of 8.78%, with a low of 3.66% in 2012 and a staggering high of 16.63% in 1981.  Looking at the historical data it becomes quite clear our current home financing atmosphere is still incredibly cheap.  So the next time you get inundated with the short-term data, remember the big picture and where mortgage rates have been in the not so distant past.

Reproduced with the permission of Mortgage-x.com
For information regarding the purchase of a home or other mortgage topics, contact myself or your local mortgage professional.
Visit my Facebook page or email me at rob@ccmloans.com
Rob Smee, Mortgage Consultant – Country Club Mortgage

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