When will interest rates get back to historical levels? Great question! The Fed just signaled that the prime lending rate will be increased another quarter point, but the 30 year fixed mortgage interest rate continues to hover around 4%. Let's put this in historical perspective. Historically, the 30-year fixed mortgage has been around 7%. When my wife and I bought our first home in 1993, we were happy to get 8.25% from Huntington. From our perspective, having grown up in the 70's and 80's, we remembered the days of 15-20%. Those were crazy days! Today, my buyers are STILL getting 30 year rates around 4%. The question I get asked all the time: when will they start to rise?? No one seems to know the answer to that. Earlier this year, I was pretty sure they would be mid-5% by the end of summer. But, maybe due to world events, the downward pressure is keeping them in the low 4% range. From 2001 through 2010, the rates hung out in the 6% range. Those were refi boom days. Historically, THOSE were incredible rates! But today, they still hang around 4%. When will they go up? Who knows! All I know is they can't stay around 4% forever. Make the most of these current rates. David Baker Agent/Broker/Owner 614-989-5662
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