Mortgage Interest Rates History Gives A Glimpse Into Today's New Low Levels

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A newly released article from Loan Love takes a look at how today’s mortgage rates are faring compared to the rates of the past.

A recent article from the continues to provide borrowers with information that can help them to save money on their loans with a brief review of mortgage interest rates history that can help them to get a better picture of where rates stand now. This new guide from Loan Love titled, “Mortgage Interest Rates History(Compared To Now)” notes that the fluctuations in mortgage interest rates can seem pretty haphazard for many home loan borrowers – but there are many factors that influence rates and understanding what these are can help dissolve some of the mystery around this part of buying a home.

The article goes to explain some of the historic mortgage rates trends, to give some perspective on today’s interest rates. It says, “Late last year, mortgage interest rates fell to their lowest point since 1971 and then continued to drift downward. The year 1971 was one marked by rising inflation and unemployment, trends that would continue to define the next several years. Both fixed-rate and adjustable-rate mortgage rates continued to climb, peaking in the early 1980s at heights about four times what is seen today. While 2013 brought the lowest rates since the early 1970s, other economic conditions from those years were not mirrored so closely. Rather than rising unemployment and surging inflation, 2013 was marked by continued signs of slow, but steady, economic recovery and a housing market that continued to gain a foothold. With interest rates at all-time lows, most financial forecasters predicted change on the horizon for 2014. While interest rates have risen slightly, they have remained at historic lows and predictions of rising rates have mostly remained unfulfilled.”

The article goes on to explain why the experts had good reason to believe rates would go up, and some of the factors that have caused rates to go against these predictions. The article says, “There was a good reason so many financial analysts and market watchers were predicting that interest rates would begin to rise this year: the Federal Reserve had announced plans to begin easing back on the policies that were known to keep interest rates low. But instead, a surprising thing happened. Rather than starting to float upward as the Feds pulled back, interest rates dropped even lower. That’s not to say rates won’t start moving upward soon, but the predictions that they would do so are not months old. The good news isn’t just for those shopping for a home. Times of low interest rate and low inflation are good over the long-term for both domestic and international economic growth. That doesn’t mean there won’t be some ups and downs in the short run, but over the long haul, low inflation and low interest rates lend strength to financial markets.”

Loan Love notes that some of the factors contributing to current low rates include:

  •     “Economic growth. Interest rates remain sensitive to inflation, so low inflation contributes to low interest rates.
  •     Strong demand for bonds. Strong stock-market gains have helped institutions, like insurance companies, recover from the economic crisis.
  •     The Fed. Despite announcing it would allow small, short-term rises in the interest rate, the Fed is on record as stating it’s long-term plans will be to continue to keep interest rates low.”

Loan Love ends by giving some advice on how to take advantage of current mortgage rate trends. For more information on this subject, click here to read the full article on

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Kevin Blue
Loan Love
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