Who remembers the days of ‘double-digit’ interest rates? Bruce and I sure do. We were very young and persuaded into a home loan that ended up being a very bad move. By the time it was over, we had an interest rate that I don’t even want to think about or say aloud. Even though it had some consequences that took some time to recover from, we learned alot. It has made both of us better realtors and our clients certainly appreciate our knowledge and experience.
Just How Good Are Interest Rates?
Rates for a 30-year fixed mortgage have hovered around 4% in the past week after hitting a 12-month high near 5% in November. While those tenths of a percentage point will matter to your clients’ monthly payments and how much they can afford, taking a step back can reveal just how inexpensive homebuying is right now.
Mortgage rates neared 19% in the early 1980s before dropping off by the ’90s and staying under 10% since 1991. During the run-up to the housing crisis, rates for a 30-year mortgage neared 7% before reaching post-crisis lows of 3.31% in 2012.
Homeowners who have taken out a mortgage in the past decade have been able to borrow at historically low interest rates. More than 80% of households with a mortgage pay between 3% and 5.9% in interest, according to the U.S. Census Bureau’s 2017 American Housing Survey. Nearly 95% of mortgage holders have fixed-payment mortgages.
Shopping around for the best rate will save your clients money, and they can use online tools like from the Consumer Financial Protection Bureau to examine how rates will impact their monthly payments. But week-to-week fluctuations in mortgage rates shouldn’t obscure how relatively inexpensive borrowing for a home is currently.
Let the Schwanbecks Exceed Your Expectations!
We would love an opportunity to assist you in your real estate needs – anywhere in the DFW metroplex or whether you want a lake home in East Texas. And if Cedar Creek Lake isn’t the one for you, we have other East Texas Lakes to show you. Click here to view our website. Click here to learn more about Cedar Creek Lake.
SOURCE: Texas Realtors
| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com 469.283.8656 |