History of Average Mortgage Rates
The majority of financing companies and mortgage companies have been compiling data regarding the history of average mortgage rates since roughly 1971. Right off the bat we can tell you that the highest mortgage rates in the history of this country occurred from 1980-1983, when they soared well above 15% to as high as 18%-plus.
Even though mortgage rates have increased since 2004, they are still at an all-time historical low. Mortgage rates are still declining with the writing of this article. They have dipped to under 6% for the first time since October of this year.
The most important thing to remember when researching prior home mortgage rates is that rates from the past cannot predict what is going to happen in the future. That means, even if there have been some recurring trends or recurring rates throughout the years, no one can predict what the rates will look like in the future by analyzing the data from years’ past.
When mortgage rates were first introduced in 1971, the rate appeared at 7.31% and did not climb above 8% until July of 1973. The highest mortgage rate in the history of the United States was 18.45% in October of 1981. The history of average mortgage rates gets incredibly dicey and interesting at the same time during the years of 1980, 1981, 1982 and 1983. 1980 began with a rate of 12.88%, began to climb into the middle teens, dipped a little bit, and then climbed the ladder again.
1981 and 1982 were the two most difficult years in the United States for the housing market. Interest rates for mortgages were at an all-time high. They climbed up to 18.45% in October of 1981 and did not drop below 16% until September of 1982.
From November of 1978 to April of 1986, interest rates were continually in the double digits. After sinking to single digits in April of ’86, the rates rose again until October of the same year. The dip lasted until May of 1987, when the rates hit 10.60%.
For the year 2008, we have seen interest rates near or at 6% for the entire calendar year so far. We opened the year with rates sitting at 5.76% and rose above 6% in May, when they hit 6.04%. Since then the country has seen rates in the 6% range until November. We have recently dipped back below 6% at 5.97% for the firs time since October. The country closed out the month of Octboer at 6.20% despite falling below 6% at certain times.
Don’t forget, experts cannot predict how the market will change from day to day or from month to month by looking at previous year’s finance rates. This makes it more unnerving to figure out what the housing market and economy will look like in the future.
The history of average mortgage rates provides rates from each month of the year beginning with 1971 until now. To learn much more about getting better mortgage rates, visit http://www.getbettermortgagerates.com where you’ll find this and much more include comparisons and reviews of home mortgage rates.