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Are Mortgage Rates High Right Now? What Connecticut Homebuyers Can Learn From History

January 1st 2026 | Market Insights | Presented by ReadySetLoan™


Mortgage rates have been one of the biggest concerns for Connecticut homebuyers over the past two years. With rates no longer sitting at historic lows, many buyers are asking the same question: Are mortgage rates actually high — or just high compared to what we recently experienced?

Looking at mortgage rate history provides important perspective, especially for buyers navigating today’s Connecticut housing market.


Mortgage Rates in Historical Context


Mortgage rates move in cycles influenced by inflation, economic growth, and Federal Reserve policy. While recent years have felt volatile, history shows that today’s rates are not unprecedented.

In the early 1980s, 30-year fixed mortgage rates climbed above 16%. That era forced buyers to focus on affordability, strategy, and long-term planning rather than timing the market perfectly. By contrast, the ultra-low rates seen from 2019 through 2021 were an exception, not the rule.

For Connecticut homebuyers in 2025, rates in the mid-6% range sit much closer to long-term historical averages than many people realize.


Why Mortgage Rate History Matters for Connecticut Buyers


Connecticut is a unique market with higher-than-average home prices, property taxes, and strong demand in many towns. Understanding rate history helps buyers make smarter decisions in several ways:

  • Rates feel high compared to 2021, not compared to history

  • Payment planning matters more than rate chasing

  • Well-structured financing can offset higher rates

This is where working with an educational resource like ReadySetLoan™ can make a difference — helping buyers understand options, timing, and strategy without the pressure of guessing the market.


What Today’s Rates Mean for Connecticut Affordability


While rates impact monthly payments, affordability is shaped by more than just interest rates. Connecticut buyers should also consider:

  • Local home prices and inventory

  • Property taxes and insurance

  • Available first-time buyer programs

  • Long-term housing plans (5–10 year horizon)

Programs such as CHFA financing, when paired with the right strategy, can help eligible buyers enter the market even in higher-rate environments. ReadySetLoan™ regularly helps Connecticut buyers understand how these programs fit into a broader homeownership plan.


Perspective for Today’s Connecticut Homebuyer


Mortgage rates will continue to move — up and down — but history shows that buyers who focus on preparation and education tend to do better than those waiting on headlines.

The goal isn’t to predict the market. It’s to understand it.

ReadySetLoan™ helps Connecticut homebuyers cut through the noise, understand rate trends, and build a plan that fits their budget, timeline, and long-term goals.




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