2014 Home Buying - Freddie Mac Doubtful Rates Will Return to Recent Lows

2014 Home Buying - Freddie Mac Doubtful Rates Will Return to Recent Lows

"One thing seems certain: we aren't likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012."
- Freddie Mac,  March 24, 2014

There are those that hope that 30-year mortgage interest rates will head back under 4%. 

Obviously, for any prospective home purchaser that would be great news.

However, there is probably a greater chance that interest rates will return to the greater than 6% rate of the last decade before they would return to the less than 3.5% rate of 2012.

Freddie Mac, in one of four original posts on their new blog, explained that current rates are still extremely low compared to historic averages:

"The all-time record low – since Freddie Mac began tracking mortgage rates in 1971 – was 3.31% in November 2012. Conversely, the all-time record high occurred in October of 1981, hitting 18.63%. That's more than four times higher than today's average 30-year fixed rate of 4.32% as of March 20...rates hovering around 4.5% may be high relative to last year, but something to celebrate compared to almost any year since 1971."

If you are thinking of buying a home in 2014, waiting for a dramatic decrease in mortgage rates might not make sense.

Click here to search Grayslake Homes for Sale.

Jim Starwalt

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Jim Starwalt, Real Estate Broker
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Phone: 847-548-2625
Jim@StarHomeTeam.com

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2014 Home Buying - Freddie Mac Doubtful Rates Will Return to Recent Lows