Low Mortgage Rates
Low mortgage rates are relative. Descriptions such
as "low" and "high" are based on comparisons with conditions we are
familiar with. For instance, a low temperature in summer would be a
high temperature in the winter. Mortgage rates are seen in very much
the same way. In the short term, not visible from the chart to the
left, mortgage rates will commonly fluctuate a half a percent in a
stable interest rate environment. A low mortgage rate would be
seen as being at the low end of the range. If we expand the comparison
period out more it becomes easier to note a general trend in mortgage
rates. A low mortgage rate may be seen as one that simply is at the low
end of the trend. The hope of course, is the the low mortgage rates are
occurring at the present part of the trend.
What the chart shows is that until just recently we have not been in
a low mortgage rate environment. Instead, for the majority of the last
half century we have been in a high mortgage rate environment. The norm
is between five and six percent and rates were considerably above that
norm for much of the last century. Low mortgage rates spur
housing growth by making housing more affordable. It is amazing that
home ownership rose during the last half of the century with rates
significantly above normal. Check out our Mortgage
Services page for detailed tips on procuring the best mortgage rate
in Omaha or anywhere else.
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Cash rebates for buyers.