In my last blog, I mentioned that mortgage rates are rising. It is now 4.14% for 30-year fixed rate mortgage. The market is reacting because the Federal Reserve Boards are likley to increase their rates, and the President-Elect Mr. Trump plans to invest in infrastructures such as roads and bridges. The average rate of 30-year fixed rate conventional mortgage has gone up from about 3.5% to more than 4% in a week.
To visualize that 4% mortgage interest rate is historically still low, I plotted the mortgage rates over the years since 1971 (data from Freddie Mac website as of Dec 1, 2016). The peak was in 1981 wtih more than 18% interest rate.
Now you feel 4-5% is not too bad, do you? Let me know if you want to invest in real estate, or downsize, upsize, or relocate.
Email me at firstname.lastname@example.org or call me at 410-967-4765.
Historical mortgage rates over last 45 years
Dec 02, 2016