History of Interest rates.



What is really going with interest rates? Is it so crazy that first time buyers will find it almost impossible to buy?

  1. Early 2000s:

    • In the early 2000s, interest rates were relatively high compared to the later part of the decade.
    • The Federal Reserve responded to the Dot-Com Bubble by cutting rates, leading to a period of lower rates.
  2. Mid to Late 2000s:

    • Interest rates remained relatively low in the mid-2000s, contributing to the housing market boom.
    • Rates started to rise gradually as the Federal Reserve sought to curb inflation.
  3. Financial Crisis (2008-2009):

    • In response to the financial crisis, the Federal Reserve dramatically lowered interest rates.
    • Rates reached historic lows to stimulate economic activity and stabilize financial markets.
  4. Post-Financial Crisis (Late 2000s to Early 2010s):

    • In the aftermath of the crisis, interest rates remained at historically low levels for an extended period to support economic recovery.
  5. Mid to Late 2010s:

    • In the mid-2010s, the Federal Reserve began a gradual process of raising interest rates to prevent overheating of the economy.
    • Rates remained relatively low by historical standards, but there was a shift towards normalization.
  6. 2020 and Beyond:

    • In response to the COVID-19 pandemic, the Federal Reserve cut interest rates to near zero to provide economic support.
    • As of my last update in September 2021, rates remained at historically low levels, with the Fed indicating a commitment to accommodative policy until economic goals were achieved.

Interest rates are influenced by a variety of factors, including economic conditions, inflation, and central bank policies.


To get the best rate, call me directly to discuss your options. I am always available for a consultation.



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