I received a text message this afternoon from a reader who wrote, "Just saw on ticker that mort rates are
lowest in 30 years". Since I haven’t written anything on MORTality rates on the blog (other than this odd little story), I’m assuming he meant MORTgage rates.
It’s true, mortgage rates are low this week as a result in part of the market decline. But the lowest in 30 years? I’d be surprised if it’s true, below is a recap of the annual average of 30-year fixed rate mortgages, dating back to 1977. We’ll use 5.5% as your current average since that’s what Mark Weddle was quoting last week. You can see the entire month-by-month breakdown here. So, is the claim true? Let’s see:
- Average of 5.84% in 2004
- 5.45% in March of that year
- Average of 5.83% in 2003
- 5.23% in June of that year
Pretty darn close.
Just for "fun", the highest rate was 17.60% in February 1982. I can’t imagine.