Historically, We Are in a Great Place: A Look at Mortgage Interest Rate Trends

Historically, We Are in a Great Place: A Look at Mortgage Interest Rate Trends

For anyone considering buying a home, refinancing, or simply keeping an eye on the real estate market, mortgage interest rates play a crucial role in affordability and decision-making. While today’s rates might feel high compared to the historic lows of 2020 and 2021, taking a step back and looking at the bigger picture reveals something important: historically, we are still in a great place.

A Look at the Past: Perspective on Interest Rates

Since 1972, mortgage interest rates have experienced significant fluctuations. In the early 1980s, rates soared above 16%, making homeownership a far more expensive endeavor than it is today. Even in the 1990s and early 2000s, rates hovered between 6-10%, a range that, at the time, was considered relatively normal.

By comparison, recent years have given us an incredible opportunity to borrow money at historically low rates. The pandemic years of 2020 and 2021 saw record-low mortgage rates, dipping below 3%. While we’ve seen an increase since then, today’s rates—hovering around 6.72% in 2024—are still far below the double-digit rates seen in previous decades.

What This Means for Buyers

The reality is that mortgage rates are cyclical, and while they fluctuate, they rarely stay at extremes for too long. Homebuyers waiting for rates to drop back to 2020 levels may be waiting indefinitely, and in the meantime, home prices may continue to rise. Historically, we are in a much better place than buyers in the 80s or even the early 90s, and today’s rates still allow for reasonable affordability, especially when paired with smart financial planning.

The Next Steps

If you’re considering buying a home or refinancing, now is the time to have a conversation with an expert. Mortgage rates are just one piece of the puzzle, and a knowledgeable loan officer can help you understand how today’s market fits into your financial goals.

Reach out to Lisa Zambelli or Joe Cordeira at Cliffco Mortgage Bankers to explore your options and make informed decisions about your next steps in homeownership. Their experience and insight can help you navigate this market with confidence.

Don’t wait for the ‘perfect’ time—historically, we’re already in a great place!

Lisa Zambelli
(631) 871-9857
LZambelli@cliffcomortgage.com

Joseph Cordeira
(516) 996-9070
JCordeira@cliffcomortgage.com