The average 30 year mortgage interest rate has been above 6% for the past three years (2022-2025) and sometimes we think of that in the context of mortgage interest rates having been below 4% between 2019 and 2021... but it can be helpful to look back even further for a broader perspective.

One way of breaking down the mortgage interest rates over time is as follows, with 5% and 7% being the break points.

1995 - 2002:  Rates were mostly above 7%.

2002 - 2010:  Rates were mostly between 5% and 7%.

2010 - 2022:  Rates were below 5%.

2022 - 2025:  Rates have been mostly between 5% and 7%.

Look ahead at the next three to five years, I think it is most likely that we will continue to see mortgage interest rates between 5% and 7%.

It is possible, but I think extremely unlikely that they will be below 5% again.

It is possible, but I think relatively unlikely that they will rise meaningfully above 7% and stay there.

If you're borrowing money via a mortgage to buy a house (most buyers are) then you will be paying some cost of borrowing that money in the way of a mortgage interest rate.  

The range of mortgage interest rates we have been seeing over the past three years seems likely to be what we'll see over the next three years... though perhaps we'll see rates drop a bit back towards 6% or even down to below 5% and 6%.

  

So, home buyers - don't wait for ultra-low rates to return - we are likely to be staying in the 5% to 7% range for a while - so focus on finding a home that fits your budget in the current mortgage interest rate environment.

And home sellers - with buyers more sensitive to monthly payments, pricing your home competitively is key to attracting serious interest.