Interest Rates & Average Rates By The Decade

April 1st, 2014

Borrowers are often worried about rising interest rates as they rightfully should because it impacts their monthly payment and the overall house they can afford. However, those of us who have been in the business long enough know that these rising rates (projected to be above 5% in Q1 of 2015) are still a great deal! To put this in perspective, Freddie Mac has been tracking mortgage interest rates since 1971 and recently released this chart:

Decade Average 30-year fixed mortgage rate Approximate Payment (P&I) on a $200,000 Mortgage
1970s

8.86%

$1,589

1980s

12.70%

$2,166

1990s

8.12%

$1,484

2000s

6.29%

$1,237

2014 Avg YTD

4.36%

$997

Source: Freddie Mac Primary Mortgage Market Survey. Tracking Through the PMMS began in March 1971. Mortgage payments are P&I only, based on a $200,000 fully amortizing mortgage. All terms are assumed to be 30 years

Today, the 30 year fixed is at 4.5% and we will likely see rates continue to rise throughout the year.

Source: Clayton Scott – Windermere Mortgage


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