Does anyone remember when interest rates were over 10%? I dug into the distant past and found these rates on Value Penguin Inc. I guess we have a lot to be thankful for right now. Take a look....
Year Lowest Rate Highest Rate Average Rate
1990 9.56% 10.67% 10.13%
1989 9.68% 11.22% 10.32%
1988 9.84% 10.77% 10.34%
1987 9.03% 11.58% 10.21%
1986 9.29% 10.99% 10.19%
1985 11.09% 13.29% 12.43%
1984 13.14% 14.68% 13.88%
1983 12.55% 13.89% 13.24%
1982 13.57% 17.66% 16.04%
1981 14.80% 18.63% 16.64%
This week, the average U.S. rate for a 30-year fixed mortgage fell to another three-year, according to the latest Freddie Mac Primary Mortgage Market Survey. According to the company’s data, the 30-year fixed-rate mortgage averaged 3.55% for the week ending August 22, 2019, down from last week’s rate of 3.6%. That's almost a percentage point lower than its 2018 average of 4.53%.
The benefit of lower mortgage rates helps home sales by making payment more affordable and allows people to refinance to rebalance their expenses. We'll see how these rates impact the local market.
Source: Housing Wire, August 22, 2019 & ValuePenguinInc website