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Mortgage Rates: History

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Mortgage Rates: History

The History Of Home Mortgage Rates

This 1970's

Rates in the 1970's started off in the mid-7% range and peaked at a high of 11.2%

This 1980's

The 1980's rates reached a historic high at over 18%. However, the decade ended averaging 10%

The 1990's

The average mortgage rate in 1990 was 10% but they slowly fell and finally dipped below 7%

The 2000's

Over the next 20 years rates fell from 8% to a historic low in 2020 of 2.68%

As mortgage rates continue to climb, many people seem hesitant to purchase a home. Will the market crash? Are the prices of homes too high? Are the interest rates too high?

These are all valid concerns and questions.

There is an old proverb that reads, “The Best Time To Plant A Tree Was 20 Years Ago. The Second Best Time Is Now“.

How does this relate to purchasing a home and securing a home loan?

Thanks to Freddie Mac we have access to a lot of data regarding 30-Year Fixed-Rate Mortgage Rates starting in 1971. In the 1980s The US was forced into a recession with an oil embargo against the country. One of the effects of this was hyper inflation, where the cost of services and goods rose quickly. (does this sound familiar?) To counteract this inflation the Federal Reserve raised interest rates. This meant the cost to borrow money rose as well. (ring a bell?) This caused record high interest rates for mortgages peaking over 18%. 

Over the next 3.5 decades home loan interest rates settled down and mortgage rates seemed to average between 5%-10%. 

However, in 2008 the housing marked crashed leaving many home owners owing more for their house then it was worth at that time. 

In order to stimulate the economy and provide some relief, the Federal Reserve cut interest rates, making it easier to borrow money.  


There are many Factors to consider when deciding to shop for a home and a home loan. Low interest mortgage loan rates encourage home buying. Higher home loan interest rates make it more difficult to borrow money. Our Mortgage Loan Originators can help you determine how much money you can borrow by comparing your debts to your income and your payments.

Everyone is unique. What might be the wrong time for someone else, might be the perfect time for you. 

Mortgage rates are not specific to local areas like Palm Bay, Melbourne, or Viera. Mortgage rates change daily and our team can help you make a decision based on the loan rates and terms currently and your ability to secure a loan.

The Best Time To Secure A Mortgage Loan May Have Been 2020. Nonetheless, The Second Best Time May Be Today.

With the Federal Reserve increasing loan rates, don’t hesitate to call and talk to a Mortgage Loan Originator. Find out how much money you can qualify for to purchase a home. 

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