House Hunting? Here’s an Update on Current Mortgage Loan Rates

Homeowners taking advantage of house mortgage rates

With mortgage rates on the rise, some homebuyers are opting to wait until the best mortgage rates improve again. The reasoning behind this decision is understandable, as rates have been in the 4% range, the 3% range, and even the 2% range over the last decade. So, is it wise to proceed with a home purchase now that rates are in the 5% range?

Historical data provides some perspective on the current situation. Freddie Mac reports that over the last 50 years, the 30-year fixed mortgage rates were usually between 5% and 10%. In 1981, rates peaked at 18.63%, but this was a rare occurrence as rates were mostly in the 6% to 7% range. It wasn’t until 2010 that rates dropped below 5% and in 2020, we saw rates fall into the 2% range for the first time in Freddie Mac’s history.

This data indicates that the rates we have grown accustomed to in recent years are more of an exception than the norm. In fact, today’s mortgage loan rates are relatively low compared to historical averages. While predicting future rates is not possible, knowing that the current rates are historically low does provide some confidence when shopping for a home. A comparison of the 30-year fixed monthly payments of a home purchased today and one purchased in 1981 will likely make the current monthly payments more appealing.


Loan Amount Year Interest Rate P&I Payment
$  400,000.00  2022 5.875% $      2,366.00 
$  400,000.00  1981 18% $      6,028.00 


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30-Year Fixed-Rate Mortgages Since 1971 from FreddieMac,

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Alpine Bank Staff

Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.

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