Last month saw an average interest rate of 4.14% on 30 year fixed rate mortgages. This was the lowest figure since the beginning of last year!
Even though this is extremely encouraging news, what's often underappreciated is just how competitive mortgage rates have actually been for some time.
A great way to help understand this is to look at Freddie Mac's table that maps average interest rates for every month since 1971.
Going back in five year increments demonstrates how competitive current rates are on a historic scale:
April 2014 - 4.34%
April 2009 - 4.81%
April 2004 - 5.83%
April 1999 - 6.92%
April 1994 - 8.32%
April 1989 - 11.05%
April 1984 - 13.65%
April 1979 - 10.50%
April 1974 - 8.58%
In fact the highest ever average interest rate since these records began was in October 1981 when the average rate was, incredibly, 18.45%
Clearly, even if interest rates were to begin to climb again, they would still be competitive with the past.
It's therefore a great time to either get on the housing ladder or move upscale. Renters should consider that rents are very likely continue to rise as they have for some time and that locking in a low fixed mortgage rate right now means controlled costs for the life of the home loan.
Why not contact us today to discuss your best options.
