Today in our Market Updates series, we have some interesting information about the average interest rates and mortgage payments throughout the last 4 decades and into today.
The infographic above, provided by our friends at KCM (Keeping Current Matters) shows the difference in interest rates and mortgage payments from the 70's to today. In the 70's the average interest rate was at 8.86% with average mortgage payments costing about $1,589. In the 80's the average interest rate skyrocketed to a whopping 12.7% with average mortgage payments costing about $2,166. In the 90's interest rates lowered to a similar 70's rate at 8.12% with an average mortgage payment of $1,484. In the 2000's the interest rate lowered again to about 6.29% with average mortgage payments around $1,237. Today we are at an all time low! With the average interest rate at 4.04% and average mortgage payments of $959 there really is no better time to enter the housing market! Although interest rates are expected to increase within the next 12 months, they're still lower than they have been in 4 decades! Lock in a low rate today!
photo cred [KCM: KeepingCurrentMatters.com]