Interest rates for mortgage loans continue to increase, which represents a serious problem for buyers. However, they are still very far from their historical maximum, in this post we will teach you more.

If the data referring to the history of mortgage rates and their evolution over the years are studied, Freddie Macis a certified information provider, in the world of American real estate, records have been found since the 1970s. By comparing and examining all of this data, an annual mortgage rate can be averaged for a 30-year fixed rate mortgage loan.

As its name indicates, a fixed rate loan is those credits with an interest rate that does not change in value during the time the loan is active. They are generally granted with periods of 15 or 30 years for the payment of the credit. Both local and foreign investors can finance their purchase, but interest rates vary for each case.

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Mortgage rates directly affect the total price you will pay for the mortgage. For your investment, the higher the rate, the more money you will have. to disburse to pay the credit. By April 2022, 30-year fixed mortgage rates were positioned above 5% due to policies addressed by the FEDE, the increases have been carried out gradually after the abrupt fall to their minimum Historically, after the crisis caused by Covid-19, mortgage rates were around 3.2%.

Mortgage rates in the 70's - 9.03%: This decade was influenced by Due to high inflation, the economic measures taken did not have a favorable impact. This caused the fall of large areas of production and commerce, not only the real estate sector suffered; With this crisis, large industries such as automobiles were also strongly affected.

Mortgage rates in the 80's - 18.70%: As if the inflation that was dragging on from the 70's was not enough, In the 1980s, an oil embargo worsened the situation, causing mortgage rates to rise to 18.70%. This decade saw the highest mortgage rates in history.

Mortgage rates in the 90's - 8.12%: Compared to previous decades, in the 90's mortgage rates were allowed. With a moderation in mortgage rates, baby boomers recorded maximum income, which translated into greater purchasing power. The second half of this decade represented economic growth supported by information technology and the growing internet.

Mortgage rates in the 2000s - 6.29%: In this decade the economy faced or several challenges, due to different events such as the invasion of Iraq, the rise in oil, the rise of the Indian and Chinese economies. However, it always remained below the historical maximum even after an economic recession during 2007 and 2009, which brought about the bursting of a real estate bubble where borrowers could not afford to pay. ;an pay their mortgages.

Mortgage rates in the 2010s - 4.08%: After overcoming the most critical recession in economic history In the United States, in 2010, the real estate real estate market became It is a fundamental pillar for the economic stability of the country, being one of the sectors with the greatest movement.

Without a doubt, it is still a good time to buy or invest in Florida. Despite rising mortgage rates you can still take advantage of current market conditions. Plan a virtual meeting with a professional advisor.