30 Year Fixed Rate Mortgages – Changes over Time Infographic
30 Year Fixed Rates have risen from all-time lows , yet remain at low levels historically.
2013 has been an interested year for mortgage rates. Fresh off the all-time low levels we saw in 2012, this year has been a bit of a roller coaster ride. When you shop for 30 year rates, how do you know what is a good rate and what isn’t?
The Feds have been behind the wheel driving the mortgage rate bus, continuing to purchase mortgage backed securities, which helps keep mortgage rates low. This is know as their Quantitative Easing (QE) Program. The QE Program was designed to help the housing market recover, and low rates have been a huge part in helping home sales and values recover from the recession.
In May of 2013, the Fed announced they would start tapering off their purchasing of these securities. This announcement caused mortgage rates to jump quickly. Then in late July, we found out The Fed won’t change their QE Program, which pushed mortgage rates down a bit. These changes have caused some folks to be hesitant about getting a mortgage, as they wonder if mortgage rates are too high and might come back down or if they are still on the rise.
Take a look at the infographic below get a better grasp on just how low the 30 year fixed rates still are historically. Mortgage rates may not be setting “record low” marks, but they are still incredibly low. If you are still on the fence about buying your first home, take into consideration just how low 30 year rates are and you’ll see buying a home is still very affordable. If you have been mulling over the idea of a refinance, you may not be able to get a lower rate in the next few years than what we are seeing now.
Bottom line is you should contact your local mortgage broker and discuss your situation. They will be able to provide you with a good outlook on current mortgage rates, payment options, and an honest sounding board.