Articles May 22, 2025

Are Mortgage Rates High?

Mortgage Rates Today: Not Quite a Bargain, But Not a 1980s Horror Show Either

Good afternoon from sunny Leicester, North Carolina! It’s May 14, 2025, and while the weather is pleasant, the mortgage rates might make you break a sweat. Let’s take a light-hearted stroll through today’s 30-year fixed mortgage rates and see how they stack up against historical highs, lows, and averages.


📈 Today’s Rate: A Bit of a Climb

As of today, the average 30-year fixed mortgage rate is hovering around 6.76%, according to Redfin economist Chen Zhao. It’s not exactly a steal, but it’s also not the financial equivalent of a haunted house.


🏰 The Highs: A 1980s Nightmare

Let’s rewind to the early 1980s, a time when hair was big, and mortgage rates were even bigger. In October 1981, the average 30-year fixed mortgage rate peaked at a terrifying 18.63%. That’s the kind of rate that would make even the most enthusiastic homebuyer consider a tent.


🛌 The Lows: Sweet Dreams of 2021

Fast forward to January 2021, when mortgage rates hit a dreamy low of 2.65%. It was a time when borrowing felt like a bargain, and homeowners were locking in rates that seemed too good to be true. Spoiler alert: they were.


📊 The 50-Year Average: The Middle Ground

Over the past five decades, the average 30-year fixed mortgage rate has settled around 7.73%. So, today’s rate of 6.76% is actually below the long-term average. It’s like finding out your “meh” cup of coffee is actually better than what most people have been drinking for years.


       

🧠 The Takeaway: Perspective is Everything

While today’s rates might not make you jump for joy, they’re far from the horror stories of the past. If you’re considering buying a home, remember that rates fluctuate, and timing the market is as tricky as predicting the weather in the mountains.

So, take a deep breath, maybe enjoy a walk in the beautiful Leicester sunshine, and remember: in the grand scheme of mortgage rates, things could be a lot scarier.


Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Always consult with a financial advisor before making major financial decisions.