The Real Deal New York

Most US homebuyers believe super-low mortgage rates normal

December 11, 2013 12:31PM
By Business Insider

RedfinNormalLoanRates

Redfin data on Americans’ perceptions of home loan rates

A staggering 83 percent of American homebuyers consider a “normal” rate for a 30-year fixed-rate mortgage loan to be under 5 percent, new data from Redfin shows.

It seems the last few years — in which the Federal Reserve depressed interest rates in an effort to stimulate lending — has had a pretty crazy affect on American memories.

Rates have averaged 6.7 percent since 1990, according to Redfin. The rate for the 30-year mortgage never once dropped below 5 percent until March 2009.

Here’s the history of the 30-year conventional mortgage rate, courtesy of FRED:

30YrMortgage

30-year conventional mortgage rates

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