February 29th, 2020 4:54 PM by Jackie A. Graves, President
If you're in the market to buy a home, today's average mortgage
rates are something to celebrate compared to almost any year since 1971.
Mortgage rates play a significant role in how much home you can
afford, and it's important to watch them carefully as a homebuyer. The lower
the rate, the better — even a small rise in rates can make a home that was once
Mortgage rates change frequently. Over the last 45 years, they
have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it's
not likely that the average 30-year fixed mortgage rate will return to its
record low, the current average rate of 3.45% is pretty close— all to your
To put the financial importance of mortgage rates in
perspective, this chart outlines a $200,000 loan financed at various rates over
the past 50 years.
Approximate monthly payment on a $200,000 mortgage
February 27, 2020
Source: Freddie Mac
Primary Mortgage Market Survey® (PMMS®). Tracking through the PMMS began in
March 1971. Mortgage payments are principal and interest only, based on a
$200,000 fully amortizing mortgage. All terms are assumed to be 30 years. FreddieMac.com/pmms/
Buying a home is a big investment — perhaps the biggest one
you'll make in your life. So, it's important to be sure you're ready to make
that purchase. If you are ready, today's rates are not to be missed.
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