High mortgage rates? Let’s keep it in perspective.

Mortgage rates are on the rise once again.  Both stocks and bonds have been selling off resulting in bonds having to increase their attractiveness with offering higher yields.  The result is higher mortgage rates.

But let’s keep this in perspective.  An average 30-year fixed rate today as I write this is 6.5%.  Is that high?  Compared to the 5.75% of earlier this year and the 5.25% of 2003, yes it is.  But historically, 6.5% is a GREAT interest rate to buy a home.

Here are some rates from the past:  November 1983 – 13.5%.  March 1990 – 10.8%.  June 1996 – 8.0%.  May 2000, 8.4%.  July 2006 - 7.0% and June 2007 – 7.0%.  So is 6.5% a “high” interest rate.  I don’t think so.