Freddie Mac publishes a weekly Primary Mortgage Market Survey where they survey the 30-year and 15-year fixed mortgage rates. According to the survey, this week’s 30-year fixed rate is 6.96% and the 15-year fixed rate is 6.34%. The survey contains data going back to 1971. Looking at rates over the last 50-years, today’s rate is lower than rates in the ‘70s, ‘80s, and for the better part of the ‘90s. The highest 30-year fixed rate was in October 1981 at 18.63% and the lowest rate was in the beginning of January 2021 at 2.65%. Considering the spectrum of rates over time, today’s rate is a lot closer to the bottom than the top. In fact, today’s rate is lower than what the rate was for the better part of 3 decades.

Where rates go from here is always hard to say. We counsel clients to be comfortable with today’s rate and payment, because they may be making it for some time. For example, at a $500,000 loan amount, at 6.96%, the monthly principal and interest payment is $3,313.09.  Compare this to what you would pay in rent for a similar property. When looking at it this way, the monthly payment may not be far off from rent payments for similar types of properties.

Here is the link to the Freddie Mac website if you’d like to take a look: https://www.freddiemac.com/pmms

If you are on the fence as to whether to buy in this market, give us a call. We can look at your individual scenario and counsel you to the best decision for you. We Work For You, Not The Lender.