Interest Rates through the Years
I am going to tip my hand pretty quick here, and give away my age. But I was recently talking to a client's father and we were reminiscing about what kinds of interest rates we have paid on various homes we have owned throughout our lives.
We both bought our first homes in the mid 80's when interest rates were in the double digits. When my husband and I purchased our first home in 1985 interest rates averaged 12.43%. However they were on the way down - in 1981 they had been averaging 16.63%! Wow, that certainly affected your buying power.
We bought our next home in 1990 and were excited to get a rate just under 10%!! Woo Hoo, we thought we had won the lottery. And just a few years later we were able to refinance that home into a 15 year mortgage in the mid 7's. Life was looking good.
The last few years have seen some historically LOW interest rates - certainly rates that when I first began this journey we call life I never thought I'd see. They look to be on the rise, but are certainly still quite amazing. Below is a chart of where they have been over the past 40-ish years. If you are looking to buy, interest rate wise you certainly can't pick a better time.