Ever since the election, interest rates have been steadily going up. Many people ask us how high rates can go. Rather than speculate, here is a list of the average interest rate for a 30-year fixed rate mortgage for the past 40 years, as well as how many points it cost to get that rate. A point is 1% of the loan amount, so for a $300,000 mortgage, 1 point is $3,000. That’s how much extra you would pay in closing costs to get a particular rate.
Notice that the average rate over the years is a heck of a lot higher than you might think. Rates have been extremely low for the past 8 years, but our country has a drastically different type of leadership now. Be prepared for higher rates!
2016: 3.6% interest rate, and it cost .6% in points
2015: 3.85% interest rate, .6% in points
2014: 4.17%, .6% in points
2013: 3.98%, .7% in points
2012: 3.66%, .7% in points
2011: 4.45%, .7% in points
2010: 4.69%, .7% in points
2009: 5.04%, .7% in points
2008: 6.03%, .6% in points
2007: 6.34%, .4% in points
2006: 6.41%, .5% in points
2005: 5.87%, .6% in points
2004: 5.84%, .7% in points
2003: 5.83%, .6% in points
2002: 6.54%, .6% in points
2001: 6.97%, .9% in points
2000: 8.05%, 1.0% in points
1999: 7.44%, 1.0% in points
1998: 6.94%, 1.1% in points
1997: 7.6%, 1.7% in points
1996: 7.81%, 1.7% in points
1995: 7.93%, 1.8% in points
1994: 8.38%, 1.8% in points
1993: 7.31%, 1.6% in points
1992: 8.39%, 1.7% in points
1991: 9.25%, 2.0% in points
1990: 10.13%, 2.1% in points
1989: 10.32%, 2.1% in points
1988: 10.34%, 2.1% in points
1987: 10.21%, 2.2% in points
1986: 10.19%, 2.2% in points
1985: 12.43%, 2.5% in points
1984: 13.88%, 2.5% in points
1983: 13.24%, 2.1% in points
1982: 16.04%, 2.2% in points
1981: 16.63%, 2.1% in points
1980: 13.74%, 1.8% in points
1979: 11.20%, 1.6% in points
1978: 9.64%, 1.3% in points
1977: 8.85%, 1.1% in points
Call me to get your dream home before interest rates increase and afford a larger home.