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Historic Rates

Perspective is everything. With the average 30-year fixed mortgage settling above 4% for the first time in 18 months, it can seem like the sky is falling. You may have grown accustomed to mortgages below 4% as the new norm. It is important to understand the bigger picture and to see what the change actually means to you.

Below is a chart that demonstrates what the average mortgage has looked like over the past 55 years. As you can see, rates are still at historic lows; and they have recently improved from the rise we saw following the election. It is also important to understand what an increase means, in real dollars. A 0.5% rise in interest rate will only cost $89 per month on a $300,000 loan*.

*Based on a fixed-rate, 30-year mortgage for a $300,000 loan with 20% down and a credit score of 745 or better.