Historical Interest Rates - A Look at Rates the last 10 years

Talk about the interest rates are trending this summer. A .25% increase by the Fed this July was no surprise. Keep in mind that the interest rate increase may not affect the interest rate of a long term loan - such as a mortgage. Most of the adjustments by the Fed will affect short term loans, such as car and personal loans. The interest rate for a mortgage has been along for the ride this year.

The media shares their opinion of how high the interest rates are. Let's take a look at how the interest rate has changed during the last 10 years. You decide for yourself if the rate will fit your plans when it comes to owning your home or perhaps refinancing.

2013 - 4.00%

2014 - 4.07%

2015 - 3.82%

2016 - 3.65%

2017 - 4.17%

2018 - 4.55%

2019 - 4.45%

2020 - 2.65%

2021 - 3.09%

2022 - 5.34%

2023 - Hoovering 7%

As you can see, interest rates have been on a generally upward trend over the past ten years. However, there have been some significant dips, such as in 2020 when the COVID-19 pandemic caused interest rates to plummet.

Interest rates are influenced by a number of factors, including the Federal Reserve's monetary policy, the state of the economy, and inflation. When the Federal Reserve lowers interest rates, it makes it cheaper for people to borrow money, which can lead to an increase in home prices.

The current interest rate for purchasing a home is 7.32%. This is the highest it has been in over 10 years. The high interest rates are due to a number of factors, including the Federal Reserve's efforts to combat inflation and the ongoing war in Ukraine.

If you are thinking about buying a home, it is important to factor in the current interest rates. The higher the interest rate, the more you will have to pay in monthly mortgage payments. You should also be prepared for the possibility that interest rates could continue to rise in the future.

Be sure to check my BLOG next Friday. I post important real estate information that can help you make life changing decisions. 

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