History of Past Interest Rates
History Of Past Interest Rates What is influencing our home interest rates right now? Is this a good time to buy a new home? There are mixed reactions to all of this. The past might help you understand the present. The mortgage rates have never been in the control of the lenders or the banks. There is a ‘secondary market"‘ that buys and sells mortgages at bundled rates. History shows us that mortgage rates have a long standing relationship with the “Treasury Yield”. The Treasury Yield is the interest rate the government gets to borrow money. I am sure you have noticed the sudden increase in the current mortgages rates from 2.75 up to 6% and higher these days. I remember 1971 rates as a newly wed when mortgage rates were in the mid 7’s. Yet ten years later, it rose over the years at a steep increase bringing it to the mid 16’s for a home loan. Looking at ten years later in 1991, rates dropped to just over 9 percent. Today our economy is s