Historical Chart of 30 yr fixed and Prime Rate going back to 1963 - For all those who think rates are not going up, think again...

Real Estate Agent with Ranch & Resort Group ​L​I​C​-​3​2​0​9​7

30 Year Fixed Chart with Prime Rate

This chart shows why rates are going to go up and possible where they are headed.  If rates are cyclical then this chart should provide some clarity as to where rates are head in the short term.  The one thing this chart doesn't reflect is that I believe that 30yr rates will start to act on there own away from the prime rate.  In the future the 30 yr rate will not pair itself with the prime rate.  This is due to factors effecting 30 yr rates that do not have a sever and direct effect on the prime rate.  There will still be some correlation but the exact movement of both will not follow such a definite path.  I put this blog out not to doom and gloom but to educate people to not be surprised by higher rates in the short term future of the housing market.  I know as much as anybody that the effect of rising rates will be a detriment to our industry but once the public is used to the idea of higher rates it will be business as usual.  A silver lining may just be that the higher rates will kick some of these people on the fence in to gear to purchase a home before the rate goes to high... 

Comments (4)

Ted Komenda
Dunhill Group - Osterville, MA

Thanks for the post!  The information you have provided should open some eyes and get buyers doing what they so best, buying!


Oct 29, 2008 03:25 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Thanks for sharing. I posted a similar blog on the 30-year fixed interest rate --- it's a great tool to show younger buyers that the rates we have today are still so much better than they were in the early 80s, for example.


Oct 29, 2008 03:35 AM
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Thanks for the great advice. I will check back often. I really like the blog. I am new at blogging but I am beginning to learn quite a bit from reading blogs like the ones I find on Active Rain. If I can ever be of help just visit my blog or my website: http://yournowwhat.com   

                                                                 Thanks, Terry

Nov 17, 2008 05:50 AM
Jackie DeShazer
Montana Country Real Estate - Libby, MT

Thanks for the post and the advice very informative.

Mar 09, 2009 10:33 AM