Mortgage interest rates skyrocketed in 2023 to rates this country hasn’t seen since the 1990s. The sharp increase happened quickly, starting from a historic record low of 2.6 percent in January 2021 and soaring to 7.79 percent in October 2023. But while the jump raised eyebrows around the country, that high wasn’t far from historical norms. The median rate for a 30-year fixed mortgage for the last fifty years has hovered around 7.4 percent.
A small percentage change in the interest mortgage rate means a difference of thousands of dollars over the life of a 30-year loan. With constant changes in inflation and interest rates, knowing when to seek a home mortgage loan isn’t easy. The diligent Loan Officers at Asheville’s GoPrime Mortgage help you do that.
How Have Mortgage Interest Rates Changed over the Years?
Interest rates for home mortgages fluctuate constantly. Since the government agency Freddie Mac started tracking the numbers in 1971, the highest interest rate occurred in October of 1981, when it reached 18.63 percent. By contrast, the all-time lowest rate hit 2.65 percent in January of 2021 — a more than 15 percent difference.
While that spread may astonish you, another look at the history of mortgage interest rates in this country is also revealing. According to the US News & World Report, historical data revealed the median rate by decade:
- 1970s: 8.89 percent
- 1980s: 12.82 percent
- 1990s: 7.88 percent
- 2000s: 6.18 percent
- 2010s: 4.03 percent
Although rates at the close of 2023 ran close to the historical average, it feels excessive because the typical rates over the last decade averaged under four percent. While the ups and downs of mortgage interest rates generally tend to happen slowly, some jumps raise eyebrows. When average rates of around four percent lingered for the last ten years, big spikes are hard to swallow.
Should I Consider Getting a Mortgage or Refinancing Now?
If you want to finance or refinance a home mortgage loan, it’s a good idea to get pre-approved. Most applications are tailored to the particulars of your situation, such as:
- The amount of your down payment
- The location of the home
- The type of loan
- The term of the loan
- The rate of the loan
So, if you’re considering a new mortgage, investigate the variety of options available with your trusted advisor at GoPrime in West Asheville. While the road to home loans looks a bit bumpy, it’s smoothing out. That’s a good sign if you hope to buy soon.
At GoPrime Mortgage, it’s easy to start the application process. Use their website or the MyGoPrime app. You’ll get a quick estimate of what’s affordable for you. Then contact your loan officer to discuss in more detail your personalized plan for home ownership. These loan professionals understand the market rates and the challenging task of home financing. They pave the walk to that front door key.
Sources:
https://money.usnews.com/loans/mortgages/articles/historical-mortgage-rates.
https://www.brookings.edu/articles/high-mortgage-rates-are-probably-here-for-a-while/
https://time.com/personal-finance/article/historical-mortgage-rates/
https://money.usnews.com/loans/mortgages/articles/historical-mortgage-rates
https://www.cnn.com/cnn-underscored/money/mortgage-interest-rates-today-30-11-2023
