An important thing on all home buyers, sellers, and investors minds these days…interest rates and where are they headed. I think it’s important to show a historical background on where interest rates have been to understand what todays interest rate are up to.
Interest rates hovered around 4% for the majority of 2017, which gave many buyers relief from rising home prices and helped with affordability. In the first quarter of 2018, rates have increased from 3.95% up to 4.45% and experts predict that rates will increase even more by the end of the year.
The rate you secure greatly impacts your monthly mortgage payment and the amount you will ultimately pay for your home. Don’t let the prediction that rates will increase stop you from purchasing your dream home this year.
Let’s Take a Look at a Historical View of Interest Rates Over the Last 45 Years.
Bottom Line
Be thankful that you can still get a better interst 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. In one, two, five years I anticipate clients saying wow I really wish I would have bought one, two, five years ago…so lets get out there and start looking now.
