2008
This was the last year of the mortgage meltdown. According to Freddie Mac, mortgages in 2008 were available for 6.03%. Excluding tax and insurance, the monthly cost for a $200,000 home loan was $1,200. After 2008, mortgage rates began a steady decline.
2016
Until 2021, 2016 saw the all-time lowest mortgage rate in the USA. The typical mortgage in 2016 was priced at 3.65%, according to Freddie Mac. That means a mortgage of $200,000 had a monthly cost, for principal and interest, of $915. That is more than $500 less per month than the long-term average.
Note, however, that mortgage rates had actually fallen lower in 2012. In November of that year, the average mortgage rate hit 3.31%. But since some of 2012 was higher, the whole year averaged 3.65% for a 30-year mortgage.
2019
Contrary to what many experts predicted, mortgage rates dropped in 2019. In 2018, economists forecasted that mortgage rates would rise to 5.5%. However, mortgage rates went from 4.54% in 2018 to 3.94% the following year.
The monthly cost for a home loan of $200,000 at that rate was $948. When compared with the 8% long-term average, that would be a savings of just over $500 per month.
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