Interest Rates Got You Down?

Yep, us too. But let’s take a look at the history of mortgage interest rates in the US.

We have all heard the horror stories of 18% interest rates that some adjustable rate mortgages hit in the early 1980’s. The average mortgage interest rate in 1981 was 16.63%.  If you don’t remember those rates, you should ask your parents; those days are etched in people’s memories!

The 2% rates of 2021 were an anomaly. In fact, did you know that the average rate since 1971 has been 7.76%? Look at the chart below provided by Freddie Mac.

The million-dollar question is: “Will rates go back down?” Mortgage interest rates rise and fall from week to week. Where they are in the future will depend on the economy. The Federal Reserve raised rates to curb inflation but if the Fed’s action leads to a recession, you may well see rates go down a bit. Can you time the market? Probably not. The Red Hot Homes Team recommend you follow the advice so expertly given on themortgagereports.com, “buy when you are financially ready and can afford the home you really want.”

And if you do find that crystal ball that tells you exactly when mortgage interest rates will be at their lowest in the near future, please send it our way!