For whatever reason, people always seem to find these mortgage rate trend charts fascinating.
Here is the historical mortgage rate trend chart for 30 year fixed loans from April 1971 through November 2011.
Data is supplied by FreddieMac. Excel wizardry by yours truly. You are welcome to use this chart, all I ask is that you keep the credit box on the chart and link back here.
When I first published charts like this back in 2006, people left comments saying there was NO WAY the interest rates would stay where they were.
And they were right. Rates have dropped a full point since then. Though really they were wrong, because everyone expected them to rise, not continue to fall. Some even prognosticated that there was “impending doom” for mortgage rates.
Moral of that story?
No one can predict mortgage rates with any real accuracy.
One thing is evident though. Right now mortgage rates are at all-time lows (or at least at their lowest since 1971, I can’t find any earlier data). November 2011 marked the first time 30 year rates dipped below 4% (to 3.99%. Hey, it’s under 4%…). And Bloomberg reported a few days ago that rates were at 3.94 percent.
Will they drop lower? Maybe, maybe not. But let’s face it, at 4% they can’t really go much lower. Or so one would think.
Will they rise? Maybe, maybe not. Sooner or later, sure they’ll rise. When and to what extent? Your guess is as good as mine.
Should you refinance? Depends on many factors. Contact your mortgage loan officer.
I’ll attempt to update historical mortgage rate trend charts for other mortgage products (15 year fixed, 1 and 5 year Adjustable Rate Mortgages) over the next couple of weeks. Attempt mind you, no promises!
Until then, enjoy this chart, and be thankful you didn’t get a mortgage in October 1981, when rates peaked at 18.45%…