The Average Interest Rate and Mortgage Payment Over Decades
Let’s go back in time and see what interest rates and mortgage payments have been since the 70’s. Sometimes in the midst of “Breaking News” and the “World is Falling Apart” headlines it’s hard to have perspective. Usually, when we look back in time, everything tends to look a little better (remember your waist size or hairline?) especially if you’re a little older. If you’re younger, the idea or goal of purchasing a home can seem as challenging as obtaining world peace. We hope the infographic will be an encouragement to all.
Comparing the Mortgage Payment on a $200,000 House
from the 70’s to Now
The numbers above come from Freddie Mac and show the average 30-year fixed mortgage rates and monthly payment on a $200,000 mortgage.
While a lot of people in the 80’s were collecting Smurfs, E.T. paraphernalia, and Cabbage Patch Dolls, mortgages were tougher to afford with interest rates at 12.7% and monthly payments at $2,166. Compare that 80’s payment to a present monthly payment of $969 on a 4.12% loan and the difference is $1197 a month!
That will cure your nostalgia in a heart beat.
The Big Question is When Will Interest Rates Increase?
Don’t know for sure … that’s above my pay grade.
I’m just going to celebrate the time we’re in right now and help bring others to the party while money’s cheap. Why not join us?
The Big Question is When Will Interest Rates Increase?
