Interest Rates

Dated: 09/26/2018

Views: 154

History: Interest rates

With over 50 years of active involvement as a Realtor and Builder, I have a perspective that is usually different than many Real Estate agents. Living the history and participating in the ever-changing Real Estate marketplace provides insight, not gotten from being told how things were. 

Here's what I mean. My wife and I bought our first home in 1969, the interest rate was 8 1/2 % ($7.69 per $1000 on a 30-year conv). In 1982 we purchased our dream home, the interest rate was 15% ($12.64/1000). Our $200,000 mortgage was over $2500 per month (taxes and insurance were additional). At todays interest rates $2500 equates to around a $500,000 mortgage. Unless you lived during the inflation of the 70's, when prices were increasing sometimes over 10% per month, you won't understand the pain this created. From a peak of around 21% to now around 4.75%. ($17.53/1000 vs $5.22/1000. On a $200,000 mortgage the difference is @ $2,400 per month). Inflation is an interest rate killer.

The interest rate cycle from high to low and low to high is around 30 years. The cycle appears to have bottomed and rates are starting to climb. Although rates are still low by historical standards, the direction is up. 

Now, more than ever staying informed is important for good decisions. Here is the link to a great website that allows a buyer or seller to search the MLS like a Realtor and receive the latest information about buying or selling.  

http://www.BestWinterSpringsHomes.com

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Lou Atti

Over 40 years of Exceptional Results for Buyers and Sellers. As a  2nd generation Realtor who has experienced every type of Real Estate market from housing bubbles and high mortgage rates to sagging....

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