04/29/2024
700 Years of Interest Rate History:
This chart shows the historical trends of nominal loan rates and resulting real rates, as a percentage, over an extensive period from 1310 to 2018. Each dot represents specific loan instances, with the timeline showing the fluctuations in lending rates over the centuries.
A 10-period moving average of the real rate personal loans) shows annual real rates declining by 1.96 basis points per year.
As we move towards the modern era, a dotted line marks the 2018 actual real rate at 0.51% and a trend-implied rate of 0.19%, which significantly diverges from the historical rates that were much higher.
The overall trend points out the substantial decline in rates over the centuries, reaching near-zero levels in recent times. Near zero borrowing costs has huge implications for our financial present and future behavior.
🌟 Need info? Feel free to reach out to me! 📞
👋 Carl Spiteri, your Mortgage Advisor at Benchmark Mortgage.
📌 NMLS ID: 286890
📞 (858) 526-3037
📧 [email protected]
💻 carlspiteri.com
