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They were still about 6.8% in 2007. Compared to a 3% interest rate today, on a $300,000 loan that's about $700/month difference in payment, about 50% increase.
by ineedasername 5y ago
They were still about 6.8% in 2007.
Compared to a 3% interest rate today, on a $300,000 loan that's about $700/month difference in payment, about 50% increase.
Housing prices have not increased by 50%. At these rates, they often still cheaper.
- lotsofpulp 5y agoIs it possible that proportionally more mortgages were lent to riskier borrowers in years past, and as the years have gone on, for a variety of reasons, mortgages in general are now lent to less risky borrowers than before? Also a conflating factor is if borrowers were perceived as riskier in previous years, but for whatever reasons, are now perceived as less risky. Also, this is data is from a Freddie Mac website, so is it only for conforming loans? Could it be that many homes have moved up in price such that their mortgage information would no longer be reflected in this average from Freddie Mac because their mortgages are no longer conforming?