Jul 18, 2013
Mortgage rates plummet more than a tenth of a percent!
18 Jul 2013
Posted by Andrew Kantor
After skyrocketing two weeks — and causing various levels of hand-wringing and "what does this mean for the market" stories — mortgage rates plummeted last week, according to Freddie Mac (about 0.14 percent).
An average 30-year, fixed-rate mortgage goes for 4.37 percent (with 0.7 point); last week it was a whopping 4.51 percent. The week before that it was at 4.29 percent.
Perspective. The talk is about this recent upward trend:
But the scale of that graph is from 0 to 5%. Let’s make it a bit more realistic and use the most recent high point — about 18% in 1981:
Yep, all that waily, waily, waily is about a couple of little bumps. Want more perspective? Here’s the graph of mortgage rates going back to 1900:
Suddenly those 0.1 percent changes don’t seem so headline-worthy, do they?