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.