Memory Lane

Today I will take a fun trip down memory lane.

Did you know that it was the fall of 1981 (I was -2 years old!) when mortgage interest rates hit their all time peak? Yes it was this time 36 years ago when 30-year mortgage rates hit 18.39%

Yikes!

It’s important to note that in those days, not many home buyers were opting for a 30-fixed loan because rates were so high. There were a lot of people looking at adjustable rate products as a way to reduce the monthly payment.

Just for fun, let’s look at what a monthly payment would look like if those same rates from 1981 existed today.

If rates were 18.39% today, a $350,000 home with a 20% down payment would have a monthly principal and interest payment of…

$4,309! Yikes!

Thank goodness rates aren’t that high today. They are actually about 15% lower!

Today’s 30-year rate sits at 3.83% (which by the way is roughly half of the long term average).

A monthly principal and interest payment on a $350,000 home with 20% down is…

$1,309. Three thousand dollars lower than it would be using 1981 ‘s rates.

For a detailed look at what’s happening across Colorado, request my quarterly market report called “The Scoop.”