Past and Potentially Future Mortgage Rate Trends

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Anyone that is looking to buy a property these days is more than likely following the current mortgage rate trends if they plan to finance it. With home prices holding strong, changes in mortgage rates are really affecting what homebuyers can afford. Where loan rates had been historically low for years, now is a great time to look at the big picture of where rates have been, where they are now and where they are potentially headed to put things into perspective.

Mortgage Rate Historical Trends

Freddie Mac has been tracking 30 year fixed rate mortgages for decades dating all the way back to 1971. They share the results from their mortgage market survey weekly which averages mortgage application information from all across the United States.

While rates have increased a handful of points over the past year or so, they are still below the 52 year average. This may be interesting overall but today’s buyers are still trying to adjust to rates that are around 7% where they were between 3 and 5% for quite a while. This is still a far cry from the 18% we saw in the early 1980’s. Regardless, a dip in rates these days would certainly be welcomed by today’s challenged buyers. Let’s take a look if this is realistic by examining inflation.

Potential Future Rates

The Federal Reserve has been working to lower inflation since the beginning of 2022. This is important to realize as there is a connection between inflation and mortgage rates. If we look at trends of inflation and interest rates we see their patterns are most often similar. When inflation has gone up or down over the past few decades, mortgage rates followed suit soon thereafter. Recent tracking of inflation shows that it has moderated a bit this year, but we have yet to see mortgage rates follow along with their similar pattern. But if history has proven to be a guide, then we should anticipate rates dipping soon too. While nobody has the ability to predict the future, it is helpful to study past trends so we know what we can realistically expect.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.