11 Feb Mortgage rates: Still (really!) low
Home loan rates have been near historic lows for so long that studies show that many young adults don’t realize just how attractive today’s rates are.
Those who purchased homes in the 70s, 80s and 90s, however, have a different perspective. In the early 1970s, for example, mortgage rates were in the 7 percent to 8 percent range. In the early 1980s, mortgage rates rose to more than 18 percent. In the 1990s, mortgage rates ranged from around 7 percent to more than 10 percent. Rates really didn’t start dipping into historically low territory until around 2012. Studies show that many young Americans though, consider mortgage rates just a few percentage points higher than current levels — in the 5 percent to 6 percent range for example — to be uncomfortably high.
Historically low mortgage rates make it an attractive time for many families to buy a home or refinance or for anyone to invest in real estate. Where are rates headed this year? No one knows for sure, of course, but several forecasts suggest rates will continue on in the 4 percent range, trending a bit higher or lower on any given day. Freddie Mac said the average for 30-year fixed rate home loans for all of 2020 will probably be under 4 percent and could even beat the average yearly low (and record low) of 3.65 percent in 2016. The 30-year fixed-rate yearly average was 3.9 percent in 2019 and 4.5 percent in 2018.
Barsh and Cohen, P.C. is a boutique law firm specializing in residential and commercial real estate that offers the same qualified experience found at larger firms. At our firm, however, you get the full attention of a senior attorney that is assigned to follow your case from start to finish. Learn more about us on our website and give us a call at (617) 332-4700 to learn more about how we can help you.