We have seen such low mortgage rates for so long now, our expectations are for rates to remain low. Some are holding out for even lower rates before they refinance. However, our economy is not conducive to supporting lower rates.
Historically1 the average annual 30 year fixed mortgage rate since 1972 has been 9.14%. And the annual average has only been below 6% three of those years including 2003, 2004, and 2005. Those of you who have purchased or refinanced below 6% can savor fortunate timing and a wise investment.
If you believe in averages, rates would have to increase to 13% to 14% for some period of years to return us to the average annual rates of 9.14%.
Barring any further government involvement in mortgage lending, we do expect mortgage rates to move toward their historical average over the long term. The short term is impossible to predict with such a volatile economy.
Call The David M. Damaré Team for an analysis to confirm that your current mortgage product and terms are the best solutions for you in this ever-changing market.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you and your clients. David. 919.851.0999.