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Historical Mortgage Rates for the Past 4 Decades

By
Real Estate Broker/Owner with Eagle Ridge Realty / Signature Homes & Estates DRE# 01309169

Well, I've wasted the last 2 hours arguing with people who are not in the real estate industry.  I've been in it for 35 years--my first 15 as a lender and the last 20 as a Realtor.

They're throwing out stuff, they know nothing about, and I counter the argument.

I refinanced my home 5 years ago at 3.75%, which is historically low.  My dad, who bought his house in the mid 1960s was paying 4.25%, and was mad because the builder wouldn't take a VA loan as oppose to conventional because it took too long.

If you've been in the business a while, it wasn't until around 1986-7 when the VA let the market rate determine the interest rate rather than having the VA set the rate.  (I remember when around 1986-7 a VA loan was around 9-9.5% and 10 points!  seller had to pay points!)

Anyway, the following graph is a good history lesson of mortgage rates, and I think explains one of the factors of skyrocketing home prices.  

In all my time as a loan agent, nobody ever asked me "How much loan can I AFFORD?"  They all asked "How much loan can I GET?"

Comments (3)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Gary. Some people never let the facts get in the way of a good decision. And that good decision is often never very good at all. Enjoy your day.

Feb 22, 2022 04:49 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

That graph says it all, but it is frustrating when people lack perspective. We've been in the industry long enough to see much worse than what we have today, yet people of today still complain. The joys of real estate!

Feb 23, 2022 08:52 AM
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Your posts are always informative and that is appreciated.  Keep on posting.

Mar 28, 2024 01:32 PM