Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

The last two years have been crazy in the real estate market. Low mortgage interest rates made it a fantastic time to buy a house. The question is – are mortgage rates still low?


Let’s look at the past, the present, and what is expected to happen over the next few months. That’s the best way to understand where we are right now. 


Mortgage Rate History

Since we just got out of November, let’s use that as our benchmark. According to FreddieMac here are the average rates we’ve seen over the last few years. 


  • November 2021: 3.07%
  • November 2020: 2.77% 
  • November 2019: 3.70%
  • November 2018: 4.87%
  • November 2017: 3.92%


While the numbers are generally in the 3’s and 4’s, keep in mind these will make a big difference over the long run. That’s why investors and homebuyers have been doing everything they can to buy during this housing market. 


To help show why let’s look at the numbers. 


  • If you bought a $300K house in November 2021, had a 60K down payment and a rate of 3.07%, your monthly mortgage would be about $1,304. 
  • If you bought the same house in November 2018 when the rate was 4.87%, your monthly payment would’ve been about $1,553. 


Now you can see how even a small percentage change can have a big effect on your monthly payment. The difference is almost $250 per month!


That’s not all. Over the course of a 30-year loan, you’re paying $89,640 more. That is why so many people have been working with mortgage brokers to get in on this now!

Are Mortgage Rates Still Low? 

As we just talked about, right now the rate is 3.07%. Even though that’s not the rock bottom rates we were seeing in late 2020 and early 2021, it’s still pretty darn good. Just to put it in perspective, look back to the mid-2000s. In November 2005 the average interest rate was around 6.33%. 


If you plug 6.33% into the same house situation we discussed earlier, now you’re talking about a monthly payment of $1,774 per month! $470 more per month than borrowing at today’s rates!


We know what you’re thinking. “But that doesn’t matter, that was a long time ago. Rates won’t get that high again.” 


Don’t be so sure about that. 


Mortgage Rates Still Low but Going Up

Most professionals in this space believe that interest rates will keep rising over the next year. The consensus is that rates can reach the mid 3’s by the middle of next year and 4% by the end of 2022. 


Why will the Fed raise interest rates? Because inflation has been very high over the last year (6.2%) and raising rates is one way inflation can be slowed down


The point is that if you want to buy a home, we recommend doing it sooner rather than later. Talk to a lender and get preapproved for a mortgage now so you can lock in that interest rate you want. Smart home buyers know that both home prices and interest rates will continue to climb, meaning houses are essentially on sale right now!


Yes, the actual home prices have gone up a lot over the last year. But the low-interest rates compensate for that, meaning you’re able to buy a more expensive home with the same amount of money compared to if rates were higher. 



Are mortgage rates still low? Yes, definitely. If you’re considering buying a home, send us an email at [email protected] and we’ll see what kind of housing rates we can offer you!