What could buyers, sellers and the media not stop talking about in 2012? Interest Rates.
Interest rates are at historical lows. Just a couple of weeks ago rates on a 30-year fixed dipped below 3.5%. To give some perspective on what that means, rates for the same loan product hovered around the 7% mark a decade ago in 2002.
More Interesting Interest Rate Facts
The last time mortgage rates were above 6% was in 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 3.50 %, the monthly payment for the same size loan would be $898.09, a difference of $344 per month for anyone refinancing now.