Since November 8, financial markets have seen quite a swing.  The stock market hit its highest mark in history and interest rates have also climbed.  Financial analysts attribute this to a knee-jerk reaction from an unexpected election outcome.  With Republicans soon in control of the House, Senate and White House, speculation is that our country’s economy may rapidly grow.  With that comes inevitable inflation and higher interest rates.

However, what has really changed?  We have yet to see new economic indicator reports such as unemployment or new housing starts.  In the short term, conventional wisdom may suggest that markets, and therefore interest rates, will settle and correct.  The truth is no one really knows.

What we do know is where we have been.  It is worth taking a look at historic mortgage interest rates to gauge where we are today.  Hold onto your hat as the numbers below may make your eyes glaze over.

Over the last 40 years, 30-year fixed rate mortgage rates have ranged from a high of 18.5% (1981) to a low of 3.35% (2012).  In the 1990s, rates ranged from 6.75% to 10.5%.  From 2000 to present, 3.35% – 8%.  The cumulative average over those 40 years has been well over 8%.

For the last five years, homeowners have been blessed with very favorable rates from the mid-three percent to the mid-four percent range.  The bottom line is rates are still historically low, but are at risk of rising.  Always remember, they go up fast and come down slow.

Is your adjustable rate mortgage set to adjust soon?  Have you been considering cashing equity from you home?  If you have not taken a close look at your mortgage lately, now is the time.    Contact a local trusted mortgage lender to help analyze your current loan and provide options to meet your goals.  The window for a sensible refinance may be closing.

On another note, congratulations to the Tiger football team.  Your accomplishment brings further pride to our wonderful community.  We’re proud of you!  GO TIGERS!

Trey Powers is a licensed mortgage loan officer with City Bank Mortgage, a Texas-owned lender. Trey lives, works and volunteers right here in D.S. Call or email for help with anything related to your home loan. Contact 512-203-5869 and trey@treypowers.com.  Visit www.TreyPowers.com.