It seems the big discussion in the mortgage world lately has been about interest rates. I think it is important to put the discussion into some context, and what better context than to look at interest rates historically. The chart below tells the whole story. You can see that the average interest rate level in our country dating back over 40 years is quite high compared to current interest rates. The average interest rate is quite high compared to current rates even if they go up another 1%. The average interest rate is still higher when compared to current rates even if they go up another 2%.
You can look at the median rate, the average rate, or any kind of mathematical analysis you like when trying to make a comparison to current rates, and it’s hard to find reason for alarm in the interest rate world. The reality is that current rates are nothing to be concerned over, and if rates climb even more, it would take a long way for rates to get to the point of being alarming.