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Imagine paying over 18% interest on a 30-year fixed mortgage. It’s almost unthinkable. But that was the reality for home buyers in October 1981 – a year when the average rate was almost 17%.

Unlike today, in the early 1980s, the Federal Reserve was waging a war with inflation. In an effort to tame double-digit inflation, the central bank drove interest rates higher. As a result, mortgage rates topped out at 18.45%.

In this Just Explain It, we’ll take a look at how mortgage rates affect home loan payments, and show you what you can do to save money.

Back in the early 1980s, high interest rates had a negative effect on the housing market. Affordability dropped to an all-time low as rates climbed to record levels. Simply put, mortgage rates priced most Americans out of the market, and it took years for home sales to rebound. Today, rates are historically low for a number of reasons, thanks in large part to the Federal Reserve which has gone to great lengths to keep rates down to facilitate economic recovery. 

According to the Census Bureau, the average cost of a home in 1981 was $82,500. With an interest rate of 18.45%, buying a home was expensive. A monthly payment, after putting 20% down, would have been $1,019. That's the equivalent of $2,500 today, adjusting for inflation. And that doesn’t include property taxes, home insurance, etc.

The average cost of a home today is $322,700. If the same 18.45% rate were applied - along with a 20% down payment - the monthly cost would be $3,986. The total payments after 30 years would be about $1.43 million, with roughly $1.18 million of that going towards interest alone.

In both cases, 82% of your payments over 30 years would go towards interest.


Yahoo Finance | Zelkadis Elvi |Just Explain it | 2013

Home prices are sky high, but mortgages are still cheap

Average 30-year fixed mortgage drops to 3.90%Image result for mortgage


Posted: Jun 23, 2017 08:11 AM PDT

NEW YORK (CNNMoney) - Real estate is crazy expensive.

The median existing home price climbed to $252,800 in May, according to the National Association of Realtors, exceeding the peak hit in June 2016 of $247,600.

At this point, home prices have been rising every month for more than five years.

While that's good news for home sellers, buyers are having a tough time finding homes they can afford.

Cities across the U.S. are facing major housing shortages, which means buyers have to compete for homes with bidding wars and offers well above asking price.

"Prices are moving up and properties are moving quickly," said Danielle Hale, NAR's managing director of housing research.

Builders aren't building enough houses to keep up with demand and current homeowners are hesitant to list their properties because they're worried they won't be able to buy a new home.

"We have tremendous demand for housing, but there is nothing available to buy, said Keith Gumbinger, vice president of

Making matters worse, rents have also been on the rise,which means it's harder for potential buyers to save up for a home in the first place.

But there has been one saving grace for buyers: mortgage rates.

Even though the Federal ReImage result for mortgageserve has begun raising interest rates, mortgages have been hovering below 4% recently. Last week, the average rate of a 30-year fixed mortgage ticked down to 3.90%.

"Falling mortgage rates help to soften the blow of rising home prices," said Gumbinger.

In the weeks after the presidential election, mortgage rates rose above 4% on enthusiasm for economic improvement. But as that optimism started to wane, rates fell again, Gumbinger said.


They've remained below 4% for the last five weeks.

"After the elections, there was fantastic enthusiasm we would get fiscal policy changes and the economy was going to drive forward faster," said Gumbinger. "Not a whole lot has been accomplished on that front ... and that has confused the market and dampened enthusiasm."

With the Fed raising rates, interest rates are expected to gradually rise over time, but should stay pretty low for the foreseeable future.

Gumbinger expects rates to be a little more higher by the end of they year.

"We could have a 'peak week' of perhaps 4.5% between now and the end of the year, " he said.


Copyright 2017 by CNN NewSource. All rights reserved.

KICKING CANCER FootGolf Fundraiser

We are excited to announce our 2nd annual FootGolf charity event on Saturday, October 7th. We have partnered again with Heartfelt Heroes and Chimera Golf Course to support the Nevada Childhood Cancer Foundation. If you'd like to become a sponsor, please message us! 🎗️#heroesfightcancer


Image may contain: one or more people and text

"I like spending my money." The Beach Boys. Consumers were holding back on purchases again in March, while home loan rates hit their lowest levels of the year.

Retail Sales fell for the second month in a row, the worst two-month stretch in two years. The Commerce Department reported March Retail Sales decreased 0.2 percent from February. January to February also was revised from the previously reported increase to a decrease of -0.3 percent. These negative numbers could be significant once first quarter Gross Domestic Product is released later this month, as consumer spending makes up two-thirds of overall economic activity. Despite the declines, total sales for the first quarter were up 5.4 percent from the same period a year ago.

Inflation was tame in March on both the wholesale and consumer levels. The Producer Price Index decreased 0.1 percent in March while the Consumer Price Index fell 0.3 percent, the Bureau of Labor Statistics reported. Tame inflation is typically good news for Bonds, as inflation reduces the value of fixed investments. Since home loan rates are tied to Mortgage Bonds, they can also benefit when inflation remains cool.

In other important news, uncertainty over the tensions surrounding global events caused investors to move their money into the safer haven of the Bond markets before heading into the holiday weekend.

At this time, home loan rates have hit 2017 lows. If you or someone you know has any questions on home loan rates or products, please contact me. I'd be happy to help.


Mann Mortgage's Robert Coomer Ranked as One of the Nation's Top Originators

Mann Mortgage congratulates Robert Coomer for ranking as a Scotsman Guide 2016 Top Originator.Image may contain: 1 person, smiling, suit

LAS VEGAS, April 13, 2017 /PRNewswire/ -- Having been in the mortgage industry for 18 years, Robert Coomer has lived through both the best and worst times in real estate. "I think my history of working in this industry has helped me gain a perspective that I use to better serve Mann Mortgage's clients and the community," said Coomer during a recent interview.

Coomer also emphasizes the importance of his team. "I have carefully put together the best team in the Valley," said Coomer. His handpicked team of Loan Officers, Loan Processors and support staff are known for their hard work and dedication to their clients and the community.  This dedication is built into the company's DNA and it is working.  

Over the past year, Coomer's business has continued to grow at an incredible pace. For 2017 he finished among the top Loan Officers in the nation, ranking in the top 2% of 'Loans Closed', 'Top Dollar Volume and 'Top FHA Volume'.  He is especially proud of being 61st in the nation when it comes to FHA volume. "FHA loans are designed to help average homebuyers achieve the dream of home ownership," said Coomer. "Without FHA loans, many people would not be able to buy a home. We are proud to specialize in these types of loans."

Mann Mortgage Las Vegas continues to grow within the community as well. Their second location in Southwest Las Vegas opened recently and has already been a huge success. "We quickly outgrew our first location in Henderson and felt Southwest Las Vegas was a perfect place to expand our presence," said Coomer. With two full service locations, Mann Mortgage Las Vegas is now able to better serve clients across the valley. Both locations are fully staffed and can handle the entire portfolio of loan products in Mann's arsenal.

Serving the community is important to the company as well. This past October Coomer's daughter Madison teamed up with Mann to organize Kicking Cancer, an event that raised thousands of dollars to help fight children's cancer. The company also recently sponsored Mrs. Nevada America Stephanie Barrett who advocates for Ronald McDonald House charities.

"This past year has been an exciting one," said Coomer. "Our diverse product portfolio, stellar team and focus on the community continue to be a winning combination." With two full service locations now open and an experienced team in place, Mann has quickly grown into one of the Valley's premier mortgage lenders.

About Mann Mortgage

Mann Mortgage was founded in 1989 in Kalispell, MT. The business was built on a foundation of integrity, relationships and a genuine concern for family and community. The foundation that it was built on has held strong and has allowed Mann Mortgage, to not only endure the recent mortgage crisis, but to continue to thrive as families and lenders look for stability and integrity even in uncertain times. Mann Mortgage is dedicated to responsible and ethical lending practices.

Mann Mortgage Las Vegas offers one of the largest portfolios of financial solutions for homebuyers and homeowners. For more information, please visit the Company website at or call 702-850-2000 to speak to a mortgage professional. Robert Coomer NMLS 179395, Mann Mortgage NMLS 2550 Equal Housing Lender. This ad is not from HUD, VA or FHA and was not reviewed or approved by any government agencies.

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