Historical trend of 30 year fixed mortgage rate
Posted by Wei Min Tan on May 18, 2021
Manhattan, New York property broker Weimin Tan provides a 3 minute overview on the historical trend of the 30 year fixed mortgage rate, with data from 1972 to 2021.
A fixed mortgage means that the mortgage has a fixed interest rate for the duration of the loan regardless of how the market is doing. A 30-year fixed mortgage simply means that the borrower can lock in the interest rate for 30 long years.
Current data shows that we’re still experiencing record low mortgage rates. Back in 1982, the 30 year fixed mortgage was 16%, in 2000 it was 8%, and in 2010 it was 4.7%. The latest report from April of 2021 showed the 30 year fixed mortgage at 3.06% which is slightly higher compared to the lowest rate ever recorded at 2.7% from December 2020 to January 2021.
Low mortgage rates are a good focal point for global investors because the borrower can secure low cost of funds. If one does a 30-year fixed mortgage, it means that the interest rate is locked for the next 30 years, while rents increase over time with inflation.
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