Current Mortgage Interest Rates in the Context of the Past Decade
Scott P. Rogers
Mortgage interest rates keep on rising. The graph above shows the average mortgage interest rate over the past decade.
Periods of Green = 3._% (somewhere between 3% and 4%)
Periods of Red = 4._% (somewhere between 4% and 5%)
Periods of Blue = 2._% (somewhere between 2% and 3%)
A few resulting observations...
[1] We're getting ready to pop over 4.75%, it seems, which we've seen once (for a few months) in late 2018.
[2] We might be headed all the way up towards 5%, which we haven't seen at all in the past ten years.
[3] While we've spent most of the past decade below 4% (green+blue) we have certainly also seen long spells above 4% (red) as well.
[4] We moved pretty quickly from 2._% to 3._% to 4._% and it almost seems like 5._% could be knocking on the door.
As mortgage interest rates rise, monthly mortgage payments (for new buyers) rise, which certainly creates the possibility that at some point rapidly rising home prices won't be rising quite as rapidly.
