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2017-04-07 23:07:47
Killer interest rates

History: Interest rates

With over 50 years of active involvement as a Realtor and Builder, I have a perspective that is usually different than the average Real Estate agent . 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 1970, 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 over a $500,000 mortgage. Unless you lived during the inflation of the 70's, when prices were increasing sometimes 10% per week, it's hard to understand the pain this created. From a peak of around 21% to now around 4%. ($17.53/1000 vs $4.77/1000. On a $200,000 mortgage the difference is over $2500 per month). Inflation is mortgage an interest rate killer.

The interest rate cycle from high to low and low to high is around 30 -50 years. The cycle appears to have bottomed and although rates should remain low for a while, the direction looks 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 lender interest rates and information about buying or selling.


Blog Archive
2017-04-07 23:07:47
Killer interest rates

2017-04-05 07:19:11
Over 50 years

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