Historical Mortgage Rate Trends
For over five decades, Freddie Mac has meticulously monitored the 30-year fixed mortgage rates, providing invaluable insights into the housing market’s heartbeat. Their Primary Mortgage Market Survey compiles data from lenders across the nation, and the trends over the years have been nothing short of fascinating.
As we examine the graph, we observe a noticeable uptick in mortgage rates, particularly since the onset of the previous year. However, even with this upward trajectory, the current rates remain below the 52-year average. A closer look reveals that prospective homebuyers have grown accustomed to mortgage rates fluctuating between 3% and 5% over the past 15 years. This historical context is crucial as it elucidates why the recent surge in rates may have elicited a sense of ‘sticker shock,’ despite the fact that they align closely with the long-term average.
While many prospective buyers have gradually adapted to these elevated rates over the past year, there is a collective yearning for a somewhat more favorable rate. To assess the feasibility of this desire, it is paramount to factor in the prevailing inflation dynamics.
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