How low are rates historically speaking? Very low. We received a table “Average Mortgage Rates” from North American Title yesterday showing average rates since 1972. Year to date, the average mortgage rate has been just over 5.0%. In 1975, the average rate was 9.05%. In 1980, it was 13.74%. In 1981, it was 16.63%. 1985: 12.43%. 1990: 10.13%. 1995: 7.93%. 2000: 8.05%. This is just one more reason why NOW is a great time to buy real estate. A buyer with a $300,000 mortgage will save over $9,000 per year in interest by locking in a 4.75% rate today in lieu of the 8% rates offered in 2000.
Watch out for Unseasoned Titles, or properties that have transferred to an entity other than a foreclosing lender in the last 90 days. FHA will not allow financing for any property that has transferred, to entities other than foreclosing lenders, in the last 90 days. Fannie Mae is more flexible, depending on the lender, but nonetheless, if you are aware of a title transfer in the last 90 days, be sure to make your lender (preferably us J) aware. This issue needs to be addressed up front so there are no surprises later.
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