Mortgage rates are volatile creatures, you’ll never know where they are heading next and how high or low they’ll get. This has been highlighted the past few months after the Election Day. Given today’s rate climate, you might have doubts about refinancing or buying a home. But to be fair, today’s rates remain historically low if you look back to 10 years ago.
orortgage Rates As of Today
As of July 11, 30-year fixed mortgage rates exhibited a +13 increase to 4.25% from yesterday’s 4.12%. Per Freddie Mac’s survey for the week ended July 6, the 30-year mortgage rate averaged 3.96%, up from 3.88% of the preceding week.
While the 30-year FRMs have been moving up again, 15-year fixed mortgage kept at 3.37% day-over-day and 5-year hybrid adjustable-rate mortgage slightly increased to 3.22% from 3.20% on July 11. As surveyed last week, both the 15-year FRM and 5-year hybrid ARM moved slightly higher to 3.22% and 3.21%, respectively.
Freddie Mac’s Chief Economist Sean Becketti noted of the sharp turn of global interest rates, the 10-year Treasury yield included. When the Treasury yield increases, longer-term mortgage rates like 30-year mortgages also rise as shown in the survey.
Mortgage Rates of Yesteryears
It was only in late June that rates reached their lowest record of 3.88% for 2017. They opened the year pretty steeply by 2016 standards at 4.20% and declined to 3.97% in mid-April. Still, they flipped-flopped between lower 4%s and high 3%s.
You may have heard of experts and analysts in news reports saying that mortgage rates at this level are pretty much low by historical standards. And there’s truth to it.
Around this time 10 years ago, rates were in the mid-6% level. Historical data from Trading Economics and Freddie Mac showed that by the end of 2008, mortgage rates were upwards 4.5%. It was in the middle of 2012 that they slowed to 3.5% and closed the year with 3.33%.
From then on, rates were at 3% and 4% levels, almost alternatively. But in 2016, they were pretty much in the 3% level, the lowest of which was in July and August at 3.44%; rates sharply rose to 4.20% in December.
The Future of Mortgage Rates
Experts and investors keep track of the movement of mortgage rates and do forecasts but that’s all there is. Their movement can’t be totally predicted but mechanisms such as locking ensure you are protected should they go higher than expected while you process your application.