Think mortgage rates are high now? Homebuyers in the 1980s were paying 19% | CNN Business

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This week, the 30-year fixed-rate mortgage rate hit an average of 6.70%. It may come as cold comfort to someone who let a 3% rate slip through their fingers just seven months ago, but today’s interest rates are, historically speaking, still relatively low.

Strait recalled one couple who were actually relieved when they locked in a 30-year fixed-rate mortgage at 19% in September 1981. The couple had told her they were hoping to close on their new home before rates moved any higher. “They were so delighted to be closing at 19%,” said Strait, who now works at William Raveis Real Estate in Danbury, Connecticut.

So a 1% decline in interest rates allows you to buy 10% to 12% more home, with the exact same amount of money.” Interest rates have been below 5% for the past 11 years, with the weekly average reaching an all-time low of 2.65% in January 2021. That’s part of the reason why home prices are so high today. Incomes aren’t keeping up Making affordability matters worse, home prices are significantly out of whack with income levels.

 

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Thanks to the 2nd worst Democrat President

George and Laura Bush were in NY, attacked in 2001. War began.

American Dream is for rich Middle Class is disappearing start reporting Real News and stop spreading Fake News

Low rates drove home prices through the roof. If there is ever a home correction they should drop 20-25%

'Mortgage' originally comes from the Latin for 'death pledge'.

My father had a 13%

HA! Refinanced at 15yr 2.3 Conventional in February from 30yr 4.7 VA.... yippee Cut my mortgage in half, 15 years, got my VA certificate back and my payment is 30 bux less. I could have gone 30yr same rate fixed for half pay, why? I didn't even borrow cash on top. Good credit.

I thought the dems passed inflation reduction act. When is that kicking in?

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