as we roll into Summer 2008…
If you’re in the market to buy real estate right now one of the many details you have to consider are Mortgage Interest Rates. I’m sure you have seen that over the last few weeks they have edged up slightly to just under 6.5% for a 30 year fixed rate loan. To anybody paying attention to the bustling real estate market over the last 18 to 36 months, this may feel like rates are high.
Mortgage interest rates come across my desk every day, so with this recent small increase I got to thinking about interest rates and how they compare to years past. So using the trusty internet I searched mortgage interest rates for Summer 1983 (my first year in the real estate business!). I knew of course that mortgage rates had been in the double digits but I couldn’t remember the exact number . . . turns out interest rates were almost double where we are today at 12.12%. Wow!
In 1983, a gallon of gas was less than a dollar, a movie ticket was $2.00, and a loaf of bread was about 50 cents. With consumer pricing up across the board 2, 3 or more times in 25 years, it’s interesting that the cost of mortgage money is down by half!
Maybe the summer of 2008 is a great time to BUY!!!
Posted by Paul Walsh
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