Just How Bad are Interest Rates?
Okay, so you may have missed the lowest interest rate in our lifetime, but just how bad are interest rates right now? When I purchased my first home in 1981 (I was very young) mortgage interest rates were around 18% and 20% down-payments were required. Now that was tough! It was comparable to your grandfather walking 7 miles to school everyday in 3 feet deep snow and uphill both ways.
When we put interest rates into perspective compared to how they were in the past, it is obvious we are currently in the greatest times for homeownership. Be grateful for this opportunity and take advantage of what we have available. Enjoy today's blog!
Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters.
This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 3.5%. However, we must realize that current rates are still at historic lows.
Here is a chart showing the average mortgage interest rate over the last several decades:
Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.
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Jon Niemeyer is the Broker/Owner of EXIT Realty North Star, 1039 Sunset Dr Norwalk, IA 50211. We provide full service real estate services to the Des Moines, Iowa metro area. Learn more about Jon at JonNiemeyer.com.
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