3% Mortgage Rates

Over the past six weeks, mortgage rates have been ticking up ever so slightly. According to Freddie Mac, rates have risen above 3% and held for the first time in over a year. With rising rates becoming a more common conversation topic, just remember that these are still historically low rates. Historically low interest rates have been here to stay, causing the current seller’s market. With rates expected to climb coming into the end of next year, here is why 3% mortgage rates today are not scary.

3% Is Still Historically Low

As a homebuyer, it has never been easier to get a low-rate, fixed-rate mortgage. This is amazing for those first-time home buyers that are looking to get their first home. While this has created the current real estate market’s issues with supply, interest rates are still favorable for buyers. Low interest rates has caused home prices to soar because the demand to buy a home has significantly outpaced supply. But with higher rates inevitable, this will lead to higher monthly payments for buyers. Buying today, if an option, is still a great idea because the longer you wait, the more you will pay monthly. The graph provided below shows that while above 3%, mortgage rates are still significantly below the last five years.

Today's Mortgage Rate | Mortgage Rates Are Still Historically Low In Q4 2021 | Premier Homes Realty

Mortgage Rates Have Continued to Stay Around 3% In 2021

While some buyers are beginning to get shaken out because of higher rates, there is still a great opportunity in real estate. As real estate professionals, we realize just how great of a time it is to get buyers into their dream homes. For those who are renters, they have lost out on amazing equity gains over the last year. Over the past year, home equity has increased by homeowners well into the double-digit range nationally.

Secure Your 3% Mortgage Rate

Even though rates have started to tick up, they are still lower than ever. Some agents and homeowners remember the days of 6-8% mortgage rates. The craziest thing about that statement is that it was less than 20 years ago. Mortgage rates have steadily declined every decade, dating back to the 1980s. Take a look at the interest rates today compared to the averages over the past 5 decades.

Mortgage Rates Through The Decades | Mortgage Rates In 2021 Are Significantly Lower Than Ever | Premier Homes Realty

Mortgage Rates Have Continued to Fall Throughout the Past 50 Years

Some homebuyers might feel like they have missed out or overpaid because they didn’t capitalize on sub-3% rates. However, rates at or slightly above 3% are still low. Buying real estate now with rates around 3% is still a good idea as most experts are expecting not only rates, but prices as well, to continue to rise. In the coming 12 months, most experts predict mortgage rates well above 3%. Having a higher interest rate on your mortgage can lead to paying thousands of dollars more over the course of 30 years. While $50 a month now might now seem astronomical, think about the amount of payments and interest that will accumulate over 30 years.

Mortgage Rates Projection For 2022 | Mortgage Rates Expert Predictions For 2022 | Premier Homes Realty

Mortgage Rates Table Based On Predictions By Experts For 2022 | Premier Homes Realty


To conclude, 3% mortgage rates are not anything to be scared of. In the past decade, mortgage rates were still well above the 3% rates we see today. Do not feel as if you missed out because you didn’t purchase a home with sub-3% rates. There is still plenty of opportunity in the real estate market with rates this low. Not only will you save thousands over the course of the loan, but you will also take advantage of historically low rates. Just 3 years ago, rates were 50% higher than they are today.

If you are looking to buy a home buy don’t know where to start, check out our buying/selling roadmap. If you are looking to sell your home to take advantage of the equity gains over the past 12 months, check out our page for sellers. And do not be afraid to reach out to the Premier Homes Team for any help with your real estate needs in Louisville, Kentucky. Here is the list of all current homes for sale listed in Louisville and surround areas.