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.
Rob Smee, Mortgage Consultant – Country Club Mortgage
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