Mortgage Finders Network
National Rate Averages

Mortgage Rates

Product Rate
5/1 yr ARM 3.147%
1 yr ARM 3.299%
15 yr fixed 3.221%
30 yr fixed 3.815%

Home Equity Rates

* Updated Jun 8, 2012

Current Mortgage Rates

Many people today think that owning a home is an unattainable luxury. However, this isn't true for people with good credit, thanks to the low interest rates. To understand just how good they are, it's important to take a look at historical data. After the 1930s, interest rates averaged between 6% and 7%. Roosevelt's "New Deal" made loans more secure and accessible for low-income families. Before the depression of the 1930s, most home loans were in the form of balloon mortgages.

After World War II, interest rates fluctuated between 5% and 6%. The United States rebuilt its torn economy, and the real estate market thrived. Until the 1960s, mortgage terms were only 20 years in length. After the 30-year option was introduced, even more loans were granted. Rates remained attractive until the late 1960s. Horror struck the nation as rates were raised significantly in attempt to stay ahead of the imminent inflation. As inflation set in, the 1970s saw high interest rates. They hovered around 7% until about 1975, then rose to the 9% range. These high numbers continued throughout the 1980s, rising as high as 19% and rarely falling below 10%. During the 1980s decade, the adjustable rate mortgage, or ARM, was introduced. ARMs offered borrowers a more attractive initial rate. Without caps, these lender-favored loans soon put many people into foreclosure. Although they were working to pay their balances down, borrowers saw them actually rise instead.

It wasn't until the 1990s, the decade of sub-prime lending, that inflation was finally under control. This resulted in interest rates falling to 8% or slightly below. Borrowers had to meet all of the same requirements to qualify for a good loan. However, now those who didn't qualify were able to get a new sub-prime loan. Lenders offering this financing assigned a higher interest rate to the loan. Irresponsible lending practices escalated, eventually leading to the economic crisis in the mid-2000s. Mortgage rates today reveal the proof that the economy is slowly recovering from that crash. Nearly every city in the country is still considered a buyer's market.

Current mortgage rates have been hovering around 4.5% for the most popular loan option, which is a 30-year fixed mortgage. Borrowers who can afford a 15-year mortgage have the ability enjoy a rate even less than 4%, assuming they meet the lender's qualification criteria. Rates have never been this low in history. Not every lender offers the same loan terms. This is why it is so important to compare rates. Home loans are not only hard to get but they're also a long-term commitment. The mortgage rate forecast reveals that interest rates will climb in the near future. MortgageFindersNetwork.com is an optimal online source for comparing current mortgage rates. Although MortgageFindersNetwork.com lists the nation's top lenders in results, they are not affiliated with any of those lenders. They simply offer a service for potential buyers who want to find the best mortgage rate available to them. To show they care about home buyers, MortgageFindersNetwork.com also offers helpful tutorials on their site, featuring questions that are asked during the loan process. By filling out a simple form, the task of shopping for a good loan is easy.