Mortgage Interest Rates Historically 

Mortgage rates are still historically low, still around 3% but slowly climbing. Experts project rates will rise further.

But as a homebuyer, what do rates above 3% really mean?

Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity

Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years:

mortgage rates

As the graph shows, even though current rate is above 3%, it’s still incredibly competitive.

But today’s rate isn’t just low when compared to the most recent years. To truly put today into perspective, let’s look at the last 50 years (see graph below):

mortgage rates history view

When we look back even further, we can see that today’s rate is very low by comparison.

What does it mean if you're a buyer?

It’s important to realize, buying now still makes sense as experts project rates will continue to rise. And as rates rise, it will cost more to purchase a home. Rising mortgage rates, all else equal, will reduce your house-buying power. It will cost more per month for a borrower to buy a home.

In other words, the longer you wait, the more it will cost you.

 

Bottom Line

While it’s true today’s average mortgage rate is higher than just a few months ago, 3% mortgage rates shouldn’t deter you from your homebuying goals. Historically, today’s rate is still low. And since rates are expected to continue rising, buying now could save you money in the long run. 

Contact your local South Bay real estate expert - Krystyna Ryan - at (310)918-5027 to discuss your situation and help you find a home.