This past week, HSH Associates, who tracks interest rates reported that mortgage interest rates are the lowest they have been since the 1950’s. Rates are in the low 4% range for 30 and 15 year fixed mortgage loans. This means there are additional reasons to consider purchasing now, even when the Tax Credit has expired.
In the mid 1980’s, rates were 11-12% for fixed rate loans and ARM loans had just started to be introduced at rates of 8% for a 1 year arm. Amazingly there was still a strong market for new mortgage loans. It was a continual reduction of rates from that time until now, with the occasional uptick. Many buyers now cannot imagine interest rates above 7%. As shown in the chart below, we have been floating in that range for a few years: