.
UPDATE: Please see this post for an updated chart (through Dec 2007) plus new charts!
“We’ve got to refinance NOW, rates are going up!”
“If we don’t buy now, we may not be able to get a good rate!”
I hear comments like this all the time.
Chasing mortgage rates will drive you bonkers. Yes, the rates for 30 year fixed rate mortages are inching up. But keep this in mind… they are coming up from historical lows. Today’s rates are some of the lowest ever. If you concern yourself too much about locking into the lowest rate you’ll ever see in your lifetime, then you’ll never get anything done.The chart below shows the rate of a 30 year fixed mortgage since 1971. Note where we are today compared to the other 35 years this chart reflects.
Is now a good time to convert that ARM to a fixed rate mortgage? Maybe. Maybe not. Rate isn’t the only factor to consider in a refi. How long you plan to live in your home, closing costs, your personal and professional situation, all this and more should be considered. Consult a loan officer, CPA and real estate professional in order to consider ALL your options. Rates are important, but they aren’t everything.
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11 Sep 06 8:08 am
[...] On the subject of phlegmatic logic, The Phoenix Real Estate Guy publishes something I’ve been dying to see: A 35-year interest rate chart. I’m going to blow it up and stick on the wall in my office. [...]
11 Sep 06 1:11 pm
hmmm … so interest rates aren’t high right now?
Mind if I use this picture with a link?
–Jim
11 Sep 06 1:15 pm
This definitely puts the interest rate question in perspective!
11 Sep 06 3:04 pm
Jim (and others) - Feel free to link to the chart. I am also happy to send anyone the Excel spreadsheet with the data and chart. Just email me: jay AT thompsonsrealty.com if you are interested. I probably won’t be able to get it out until later this evening.
11 Sep 06 3:17 pm
[...] The next chart, posted by The Phoenix Real Estate Guy, presents the 30 year fixed interest rate since 1971. Click on the picture for a larger view. Think we all need to keep the rising interest rates in perspective. [...]
13 Sep 06 4:08 pm
[...] Beau turned me on to a great article by Jay regarding the 30-year trend for Mortgage Rates… Interesting stuff. Also, don’t miss Jay’s tribute to Harry Ramos… [...]
13 Sep 06 6:25 pm
[...] The commoditization of the real estate market looks to be on its last legs. Low rates and the perception/reality of those low rates have driven the market over the past few years. Now that inventory has caught up with the market, true equilibrium may be reached. Graph courtesy of Jay at buygilberthomes. Data courtesy of FreddieMac. I actually downloaded this data weeks ago, but am not the graphical wizard that Jay is. [...]
04 Jul 07 9:50 pm
Ask for a good home loan mortgage rate quote first before jumping into any refinancing scheme.
05 Jul 07 9:32 am
[...] historical average mortgage rate is somewhere between 8% and 9%. The Phoenix Real Estate Guy has a great chart here. So with that in mind we see that rates are still pretty low. It is important to understand [...]
16 Jul 07 7:20 am
[...] Depression (extreme, I know), we are still in really good shape. Don’t believe me? Check out Jay’s chart on 30 year mortgage rates - pay particular attention to the late 70’s & earlier [...]
07 Sep 07 9:33 am
[...] ?striking site now double take this story http://www.phoenixrealestategu.....hasing/127 and give comments [...]
31 Oct 07 5:53 am
[...] (thanks, Jay for the graph) October 31, 2007 | Filed Under General Real Estate [...]
01 Jan 08 2:34 pm
Charts are helpful. There are things that should be considered when looking at charts. An example: looking at the charts movement from 1973 to 1981 there is exceptional movement to the up side. In this period of time OIL was going up radically & AMERICAN workers could demand higher pay to compensate.
From 1981 to 2007 there is big movement to the downside, it would appear, caused by lower wages. 1980 Reagan the signed amnesty for millions of illegals and symbolically busted unions, driving down wages ever since. With PRODUCTIVE jobs going to China & India it seems that wages will not be a problem.
Since oil & wages probably caused interest rates to rise from 1973 to 1981, it beg’s the question, what will happen from here? Using the chart & history as a measure I’d say interest rates will be going down. Low paid labor force equals low interest rates in my estimation. There are other details but not enough space to discuse them.
Thanks for the chart.
18 Jan 08 12:23 pm
[...] 30 year mortgage rate monthly trend chart and post that was made here in September of 2006 continues to be one of the most frequented posts on this [...]
18 Jan 08 2:32 pm
I definitely agree about interest rates not being anything. A friend of mine wants to refinance their home every time they watch the news and never take
the cost of refinancing into consideration. If they don’t plan on staying a while and are going to refinance next time they watch the news they’ll most likely end up losing money on the deal.