Friday, July 23, 2010

Graphical Representaion of Mortgage Rates

One of the most important factors for any home buyer is the effect of mortgage rates. This is one major factor that we often overlook. During considering the housing's equation, monthly payment is calculated on the basis of mortgage rate. The concept is very simple. The interest rate is directly proportional to the monthly payment.

Given below is a graph that shows the 30 Year Fixed rate mortgage since 1971, as obtained from Freddie Mac's data.





Here you will see the same thing but with 5 year grouping:







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