If you’ve been keeping an eye out for mortgage rates, you’ve probably noticed the headlines that mortgage interest rates have hit the high for the last four years.
It may sound like it’s a horrible news and all but in reality it’s all okay. Let us explain….
30-Year Fixed Hits 4-Year High of 4.58%
According to industry trends and reports, we are seeing rates at their highest levels since the end of August 2013. While that sounds like a really long time, it really is not.
Since 2013, mortgage rates have been hovering around levels not seen in our lifetime, and a few months before that the 30-year fixed hit its all-time low in November 2012.
Before this period of uber low mortgage rates, 30-year fixed rates were in the high-5% and mid-6% range, which you’ll see in the charts on this page.
If you want to go back even further, rates were nearing the 10% range.
The moral of all this is that while we no longer have lifetime low home loan interest rates, but we still have historically excellent rates.
And if you already own a home, there’s a good chance you have one of these rock bottom rates locked in for life.
If You Can’t Afford the Higher Rate…
- You might want to reconsider your home purchase
- Because it’s really not that much more expensive in the grand scheme
Assuming you haven’t yet purchased a property, it’s more bad news in a housing market that is already pricey and showing no signs of letting up.
But if you can’t afford today’s mortgage rate, which is a historically cheap 4.5%, you should question your decision on buying a home.
If you look at it in the big picture, the 30-year fixed is only up about a half a point from a year ago. It averaged 4.03% this time last year.
On a $300,000 loan amount, we’re talking a difference of $88 per month. If that $88 does you in, maybe you were already overextended to begin with
And even if you can afford it, if that $88 rubs you the wrong way, just wait until rates are back at 6%.
Look at the rates back from 2003-2007
Lets face the facts, we got spoiled for the past five years. The problem is once you see something better, you’ll never look at the other thing the same way. it’s not really as bad as the headlines make it out to be.
If someone led with, “Your payment will be $88 more per month,” it would probably get brushed aside. But when we throw out “highest rate in over four years!” the panic and feelings set in.
Instead of worrying, whip out a mortgage calculator and do the math to see what it all means to you. It might not be as bad as it sounds or call us to learn more about the changes were seeing and anticipate seeing.
Call us today for more info (833-403-8230) and to get pre-approved