2016 held the lowest annual mortgage rate on record going back to 1971. Freddie Mac says the typical 2016 mortgage was priced at just 3.65%. Mortgage rates had dropped lower in 2012, when one week in November averaged 3.31%. But some of 2012 was higher, and the entire year averaged out at 3.66% for a 30–year mortgage.
Accordingly, is 2.25 a good interest rate?
So a 2.25% mortgage rate will be out of reach for many. But the good news is, rates are still incredibly low across the board.
|Average 30–Year Rate||3.94%|
|Time Period||June 25, 2020|
|Average 30–Year Rate||3.13%|
Also know, what is the lowest 30 year fixed rate ever?
But they’ve been well below that in recent years, with average 30-year rates in 2016, 2017, 2019, and 2020 all coming in below 4%. What is the lowest 30-year mortgage rate ever? At the time of writing, the lowest 30-year mortgage rate ever was 2.66% (according to Freddie Mac’s weekly rate survey).
What was the interest rate in 1970?
A survey of house-buying trends indicates that in 1970 the average home mortgage interest rate was 8.5 percent and the average monthly payment was only $126.88. Ten years later, the survey found interest rates averaging 12 percent and average monthly payments at $621.
The lowest average annual mortgage rate on 15-year fixed mortgages since 1991 was 2.66%. This occurred in both late 2012 and in April 2013. As of 2020, the average 15-year fixed mortgage rate has dropped even further to 2.61%.
Mortgage Rate History from the Past 12 Months
|Date||Average 30-year fixed||Average 15-year fixed|
|Jan. 22, 2021||2.882%||2.3615%|
|Jan. 15, 2021||2.9014%||2.3873%|
|Jan. 8, 2021||2.8892%||2.3371%|
|Jan. 1, 2021||2.8836%||2.3752%|
Above, we have predicted that the Bank of Canada’s Target Overnight Rate will remain at 0.25% for 2021 and rise to 0.50% in 2022.
The catch with refinancing comes in the form of “closing costs.” Closing costs are fees collected by mortgage lenders when you take out a loan, and they can be quite significant. Closing costs can run between 3–6 percent of the principal of your loan.
What is this? It wasn’t until 1934 that the Federal Housing Administration stepped in with an insurance program on mortgages, an amortization plan, and terms of 15-20 years. This hasn’t changed much today: many mortgages are insured conforming to standardized programs – say, 30 years, fixed interest, 80% loan to value.