The Real Deal New York

Most US homebuyers believe super-low mortgage rates normal

By Business Insider | December 11, 2013 12:31PM

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: