Do Lower Interest Rates for Mortgages Today Make Them Cheaper?

How tiny numbers are manipulating the bigger picture

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30-year fixed-rate mortgage chart. Source: FRED.
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The median sales price of houses in United States. Source: FRED.

What does the interest rate mean, exactly?

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Mortgage breakdown on a $340,000 home with a 30-year fixed rate. Source: Mortgagereports.
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Mortgage breakdown on a $120,000 home with a 30-year fixed rate. Source: Mortgagereports.
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Employment, wages and salaries for private industry workers. Source: FRED.
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Homeowner’s equity in real estate in the United States. Source: FRED.
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Mortgage debt outstanding (Discontinued Q3 2019). Federal Reserve claims mortgage debt outstanding is $16.1 trillion for Q1 2020. Source: Federal Reserve and FRED.
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GDP per capita United States. Source: FRED.

Written by

UC Berkeley, mathematics. Los Angeles. Long-time runner. Top writer on Quora, 100M+ total content views. New to Medium. Inquiries: Moumj@berkeley.edu

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