Top Motivators To Buy This Summer
If you’re thinking of buying a home this season, the biggest opportunity you have right now is to get ahead of rising housing costs. Here’s what you need to know. What’s Happening To Mortgage Rates This Year? While it’s true the 30-year fixed mortgage rate has climbed over two percentage points this year, just remember that perspective is key. Even though mortgage rates are higher now than they were during the pandemic, they’re still more competitive than historic norms. Mark Fleming, Chief Economist at First American, explains: “Rising mortgage rates impact affordability, but historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.” The graph below further illustrates this point. Today you can still lock in a rate that’s comparatively lower than decades past.
Current Mortgage Rate Compared to the Last 5 Decades
12.70%
8.86%
8.12%
Current Rate
6.27%
4.09%
1970s
1980s
1990s
2000s
2010s
Source: Freddie Mac
10
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