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Historical Mortgage Interest Rates

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					Historical Mortgage Rates
The following chart indicates how mortgage interest rates have moved up and down over the last
twenty years:

            Year                 30 year fixed              1 year ARM
            1987                    10.21%                     7.83%
            1988                    10.34%                     7.90%
            1989                    10.32%                     8.80%
            1990                    10.13%                     8.36%
            1991                    9.25%                      7.09%
            1992                    8.39%                      5.62%
            1993                    7.31%                      4.58%
            1994                    8.38%                      5.36%
            1995                     7.9%                      6.06%
            1996                    7.81%                      5.67%
            1997                    7.60%                      5.61%
            1998                    6.94%                      5.58%
            1999                    7.44%                      5.99%
            2000                    8.05%                      7.04%
            2001                    6.97%                      5.82%
            2002                    6.54%                      4.62%
            2003                    5.83%                      3.76%
            2004                    5.84%                      3.90%
            2005                    5.87%                      4.49%
            2006                    6.41%                      5.54%
            2007                    6.26%                      5.49%


Why Mortgage Interest Rates are Important

It is estimated that only 0.01 percent of people can afford to buy a home without taking out a mortgage
loan. If you aren't part of that 0.01 percent, you need to pay attention to what mortgage interest rates
are doing. The rate of interest you pay can significantly impact your monthly mortgage payment, as
well as the total amount paid for the home over the life of the loan.


The Future of Mortgage Interest Rates
It is very difficult to determine what will happen to the economy and the market, and what The Fed
will do as a result. Interest rates may stay low for a long period of time, or they may begin to slowly
creep up until they match or extend past the high rates of the 70s and 80s.
Many analysts are predicting that rates will remain low through 2010, but these predictions are nothing
more than good guesses at best. If you want to predict what interest rates will do, you can also look at
the history of mortgage interest rates, study the economy, and the models used by The Federal
Reserve. Remember though, there is no way to tell for sure what the future will bring for mortgage
interest rates.

				
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