Have you ever heard someone say that mortgage rates are just "average" or "normal" these days? It seems like a way to downplay the fact that rates have increased significantly in recent years, almost dismissing the current high rates as nothing to worry about. But does it really help anyone to compare today’s rates to those from decades ago?
- What Is the Historical Average 30-Year Mortgage Rate?
- Since 1972, the 30-year fixed mortgage rate has averaged around 7.75%.
- Currently, the average rate is about 6.78%, according to the latest data from Freddie Mac.
While these numbers can provide some context, they may not mean much to someone looking to buy a home in today’s market, where prices are at an all-time high. Recent history has shown that rates were in the 2-4% range for a significant portion of the past decade, making the current rates feel much higher than "average."
Why Saying Mortgage Rates Are "Average" or "Normal" Doesn’t Help
Many people tend to describe today’s mortgage rates as average or normal, implying that there’s no cause for concern. However, this overlooks the fact that rates were at historically low levels just a few years ago. Rates below 3% were common as recently as 2012 and 2013, offering significant savings for homebuyers.
- Just Tell People the Truth About Mortgage Rates
- Honesty is the best policy when discussing mortgage rates with clients.
- Transparency can establish trust and credibility in the eyes of potential homebuyers.
Being straightforward about the current state of mortgage rates, including how they have changed over the years, can help clients make informed decisions about their real estate transactions. Avoid sugarcoating the reality and provide them with a complete picture of the market.
In the mortgage industry, honesty can set you apart from the competition and earn you long-term trust and referrals. By acknowledging the realities of fluctuating mortgage rates and helping clients navigate the market with transparency, you can be a valuable resource for those seeking financing for their home purchases.
In conclusion, instead of brushing off high mortgage rates as "average," it’s vital to provide clients with the truth about the current market conditions. By offering honest advice and guidance, you can build lasting relationships with clients and establish yourself as a trustworthy professional in the real estate industry.
