Untitled Document

Today’s mortgage payment is over $1,000 cheaper [INFOGRAPHIC]

average mortgage rates
Reading Time: 2 minutes

average mortgage rates

Average rates show that buying now is better

Here are some highlights from the cost-across-time comparison:

  • It’s easy to put today’s low rates — still hovering around 4.5 percent — in perspective when we take a look back at mortgage rate averages over the past 40 years.
  • By this time next year, rates are expected to rise as high as 5 percent, based on Freddie Mac estimates.
  • Your mortgage interest rate has a huge impact on your monthly mortgage payment. With today’s rates, you have the potential to save over $1,000 a month compared to just a few decades ago.*
  • Today’s homebuyers are better off buying sooner rather than later and locking in a low rate while they can.

Rates are great. Why wait? Prequalify Now.

It can depend on the amount of the home loan you qualify for, but even a half a percent increase in your interest rate could add hundreds to how much mortgage you’re paying each year.

In the 1970s, the average mortgage rate of 8.86 percent came with an average $1,986 monthly mortgage payment. In the 1980s, the average 12.7 percent rate came with a $2,707 monthly mortgage payment. In the 1990s, homeowners with an average 8.12 percent interest rate paid $1,855 a month in mortgage. And in the early 2000s, this came out to an average $1,546 monthly mortgage payment at a 6.29 percent rate.*

Today’s average 4.51 percent mortgage rate may come with a much more affordable $1,268 monthly payment.* You could pay over $1,000 less each month on your mortgage than you would have paid at peak rates in the 80s. Even with an expected half-point increase in the next 12 months, rates still sit far below historic levels.

Wait now, pay more later?

Buying at today’s lower rates can give you a lot to be thankful for. You’re getting a better rate than older siblings did 10 years ago, a lower rate than your parents had 20 years ago, and a more affordable monthly payment than your grandparents paid 40 years ago. Because of this, many homebuyers find themselves facing a golden opportunity. Find out how much house you can afford before rates rise.

For educational purposes only. Please contact your qualified professional for specific guidance.

Sources are deemed reliable but not guaranteed.

*”The Cost Across Time [INFOGRAPHIC].” Keeping Current Matters, Jan. 2019.