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4 Top Mortgage Rate Increases in U.S. History

Most Dramatic Mortgage Rate Increases

Biggest Mortgage Increases in US History 

In today’s highly regulated real estate and mortgage markets one thing that still remain low are interest rates.  At around 4.6% for a 30 year fixed is still low, very low.  You might have missed the low but according to the chart above we are way below any type of 9%  plus rate!

Take a look at the chart above for the most dramatic mortgage rate increases in the United States.  This should make you feel better, a little at least, for missing the bottom.

My husband bought a condo in Seattle, WA back in the 80’s and he will attest to very high interest rates.   He tells the story of an 18% rate on a Kirkland condo and yes, it had Lake Washington water views. But still, can you even imagine!  You just don’t remember them, quickly forget or weren’t around yet to know.

This kind of  puts thing in perspective, don’t you think?  It was 8.52% in May 2000.  In 2001 we had 9/11 and rates hit bottom like a rock and now have continued low for 13 years through this modern day depression.  Interesting, isn’t’ it?

So don’t feel bad if you’ve missed the bottom and have to pay a 1 or 2 points more.  Rates have been so low for so long that is why they’re  going up and will continue to do so.  Slowly and surely.

This is another reason why buyer demand is so steady and inventory is slowly rising as sellers are coming back to the market.  Look at the last bar on the graph, real estate value increased even with exorbitant rates.  It’s all supply and demand.   Interesting to see how mortgage rates really do control behavior.

If you’re lucky enough to pay cash for your next home, which people in this market are still doing then you don’t’ even have to worry about paying mortgage interest.  You can look at the chart as an interesting part of real estate history.  And that’s a good thing!

If you need help navigating the real estate market or have any questions about it, give us a shout we’ll be happy to help.



About Terry Smith

Passionate about real estate, positive problem solver, specialty boutique real estate brokerage that does things your way! A full-time Broker & REALTOR®, helping people buy and sell homes in the Dallas - Plano area. Whether you're a buyer just starting out or someone with luxury properties to sell. I have extensive knowledge and experience to help you with your real estate transaction. I am a native Dallasite. Have questions? Ask me. You can find me on Google+ and Pinterest.

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