Here’s what’s going on with mortgage interest rates in 2021.


Today we’re going to look at mortgage interest rates from a historical perspective to get a better idea of what today’s rates mean. Mortgage interest rates hovered in the 7% range back in the 90s. After the housing crash in 2007, they hovered around the 6% range. 

One of my favorite sayings about real estate is, “The best day to buy real estate was actually yesterday.” The average home in Snohomish County was worth $461,000 five years ago in 2016. Today, that same home is worth $678,000. 

Back in 2016, rates were right around the 4.2% range and that $461,000 home would have cost $2,665 per month with a 10% down payment. With rates around 3.08% today, that payment for the $678,000 home would be about $3,334 with 10% down.

“Another big year of appreciation is going to affect affordability.”

Rates have been in the 3% to 4% range for the past 10 or 11 years, and the Federal Reserve has said they will hold rates low through 2022. 

However, there’s a big “but” involved. If home values increase another 18% like they did this past year, that could add another few hundred dollars to mortgage payments even if interest rates remain low.

My advice to buyers? Get off the fence and get in the market now. The best day to buy is actually yesterday, and if you have any questions about why that is, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.