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30-year fixed averaged 3.65% — falling rates
3.65%
Annual avg rate
30-yr fixed
-0.20pp
vs 2015
Year-over-year
0.40%
Fed funds rate
Annual avg
+1.26%
CPI inflation
Year-over-year
Estimated monthly rates based on annual averages and adjacent-year interpolation. Seasonal pattern reflects typical mortgage market spring/summer premium.
The Federal Reserve maintained a federal funds rate averaging 0.40% during 2016. The Fed held near-zero interest rates to support economic recovery.
Consumer price inflation was 1.26% in 2016. Low inflation gave policymakers room to maintain accommodative conditions.
With historically low mortgage rates averaging 3.65%, housing affordability was near the best levels in decades. Declining rates spurred refinancing activity and supported home purchases.
$1,372/mo
At 2016 rate (3.65%)
Principal + interest only
$1,964/mo
At current rate (6.84%)
Principal + interest only
$591/mo
2016 was cheaper
vs today on same loan