Mortgage Rates Today: How They Compare to Historical Averages

As we close out the year, the housing market continues to be shaped by fluctuating mortgage rates, making it a key topic for both buyers and sellers. So, where do mortgage rates currently stand, and how do they compare to historical averages?

Current Mortgage Rates

As of December 12, 2024, the average rate on a 30-year fixed-rate mortgage in the United States is 6.60%, down from 6.69% the previous week.

Reuters

Historical Perspective

To put today’s rates into context, the average 30-year fixed mortgage rate over the past 50 years has been approximately 7.72%.

YCharts

This indicates that current rates are below the long-term average, though higher than the historic lows experienced during the COVID-19 pandemic, when rates fell to as low as 2.65% in January 2021.

Investopedia

It's worth noting that mortgage rates have fluctuated significantly over the decades, reaching a peak of 18.63% in October 1981 and experiencing various cycles of increase and decrease influenced by economic conditions, inflation, and Federal Reserve policies.

U.S. News Money

What This Means for Buyers and Sellers

For buyers, the current mortgage rates, while higher than the unprecedented lows of the early 2020s, are still favorable compared to historical peaks. However, higher rates compared to recent years mean increased monthly payments and potentially reduced buying power. It's essential to work closely with a lender to explore options like adjustable-rate mortgages (ARMs) or buying points to lower your rate.

For sellers, understanding how these rates affect the buyer pool is crucial. Homes priced competitively and in good condition are more likely to attract interest in today’s market, where affordability remains a top concern.

Looking Ahead

While it's challenging to predict exact future movements in mortgage rates, some forecasts suggest that rates may remain above 6% into 2025.

AP News

Understanding the historical context of mortgage rates can help both buyers and sellers navigate the current landscape with confidence.

If you're considering buying or selling in Sussex County or beyond, reach out to learn how you can make informed decisions in today’s market.