Historic Low Interest Rates, Why you Should Care

Lately there has been a lot of news buzz about the incredibly low interest rates we are seeing in today’s market and the increased buying power that gives consumers. But did you know that not only are current mortgage rates low for today but that we have not seen rates this low in a long time? Like a really long time? Maybe since your grandparent’s parents purchased their first home? The last time rates where this low was back in the 1950’s! To give you an idea what rates have looked like historically I’ve included some graphs (from mortgage-X.com) to help put things in perspective.

(Click to enlarge)


But what does this all mean to the average consumer? Well one thing it means is that you have greatly increased buying potential! To give you a rough idea, if you where purchasing a $200,000 home right now on a 30 year fixed rate mortgage even a 1% increase in your interest rate would change your payment by about $125 per month. And maybe even more surprising it would increase your total payments over 30 years by about $44,300!

(Check out my blog post for more information)

So, if you or someone you know someone that has been purchasing a home you may want to consider purchasing soon. Who knows how long these incredible rates will last!