By Joseph Callaway

The 30-year fixed mortgage rate, always a subject of speculation, guarantees only one thing: change.

Since Freddie Mac began tracking these rates in 1971, they have experienced significant fluctuations. The peak rate was 18.63% in October 1981, and the lowest point reached 2.65% in January 2021.
The journey begins in the 1970s. Rates started at 7.5% in 1971, escalated to 10.03% in 1974, receded back into the 8% range, and then climbed to 12.9% by 1979.

The 1980s were marked by economic challenges: a recession, an oil embargo, and a savings and loan crisis. Interest rates initially peaked and then gradually decreased to 10.13% by 1988.

By 2003, the 30-year rate had declined to the high 5% range. The following recession pushed it down further to 5.04% in 2009.

As the economy recovered, with stringent borrowing guidelines in place, rates continued to decrease, moving into the 4% range, then into the 3%, and finally hitting a historic low of 2.65% at the onset of the COVID pandemic’s second year. These rates hovered near 3% until May 2022.
However, following the increase in the federal bank rate, mortgage rates also rose. In the last 16 months, they have exceeded 8%, with a recent decrease below this level.

What will 2024 bring? Experts anticipate a decrease of 1 to 1.5%. Only time will reveal the accuracy of these predictions.



Joseph Callaway is with Those Callaways eXp Realty and has been selling houses in The Magic 85254 Zip Code for more than 26 years.