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The 30-year fixed mortgage rate stayed above 7% this past week, treading water like a team stuck in the red zone. Is this the new normal, or just a tough defense? Let’s break it down.
The Game Film: 32 Years of Mortgage Rate History
Over the past 32 years, from 1992 to 2024, the average 30-year fixed mortgage rate has been about 5.9%.
Here's a quick recap of the plays:
- Early 1990s: Rates were high, averaging 8–9%—a strong defensive line for buyers.
- 2000s Housing Boom: Rates dropped to 5–6%, and with lenient qualifications, it was a high-scoring offensive game.
- Post-2008 Financial Crisis: The economy called for a Hail Mary. The Federal Reserve slashed rates to historic lows of 3–4% in the early 2010s.
- COVID-19 Pandemic: Rates hit record lows, averaging below 3% in 2020 and 2021—thanks to the Fed’s aggressive monetary easing.
- 2022–2024 Rate Surge: Rates have spiked sharply, consistently surpassing 7%, bringing us to today’s "new normal."
Those 2–4% interest rates? That was crisis management from the Fed during an emergency economy. Today, unemployment is low, GDP is growing, wages are rising, and the economy is solid.
Yes, there are some cracks—like inflation and job market concerns—but overall, this is not a crisis economy.
The Mortgage Bankers Association forecasts rates to hover around 6.3–6.4% through 2027. It’s not flashy, but it’s steady. Normal is boring—but boring is the new normal.
How Buyers Can Win in Today’s Market
Here’s the winning play for buyers in this high-rate environment: ACT NOW.
Waiting for rates to drop significantly is like waiting for a miracle play—it’s not coming anytime soon.
Meanwhile, home values are still climbing, but buyers today have an edge:
- Negotiation Power: Higher rates mean less competition, giving buyers more room to negotiate on price.
- Seller-Paid Closing Costs: Many sellers are offering concessions to close deals.
Final Thought: Be the Buffalo 🦬
Like a buffalo heading into the storm, buyers need to face the market head-on. The sooner action is taken, the sooner the long-term benefits can be realized. Educating yourself and creating a plan is key—this is the time to make a play and score big.
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The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
