The office, the roads and the coffee shop sure are lighter as many people are already off on vacation for the 4th of July holiday.
I was doing some research on mortgage rates. So many conversations with people the past few weeks have been "what happened and will now happen" to mortgage rates. We just saw the conforming 30 year fixed rate mortgage move from around 3.5% to 4.5%.
The 3's for the 30 year fixed rate mortgage look to be gone for years to come.
But, is 4.5% really that high? Yes, it seems so in comparison to a 3.5% rate but let's take a longer view of history.
The median mortgage rate for the past 10 years is 5.72%.
The median mortgage rate for the past 20 years is 6.52%.
The median mortgage rate for the past 30 years is 7.45%.
And, for the past 40 years that median rate is 8.15%.
So, a 4.5% rate is still low by historical standards. Instead of being too upset that the 3's are no longer available we should still be thankful to have rates lower than most time in history.
Now, some mortgage humor. If you have been in the mortgage business for a long time, like me, this cartoon is laugh out loud funny in depicting what the business has become the past few years.
Brett
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