Be informed and maybe they won’t be! The answer to the interest rate question can be found by looking at how high 30-year fixed rate mortgages rates were in any one particular year. Our team looks at data like this and keeps track of the history of the 30-year fixed high points of each year that was has been recorded since in 1971.
What years had the highest interest rate in a particular month in the 3% range? 2012, 2020, 2021, and 2022. How many years had a month where the highest interest rate range was 4 to 5%? From 2009 (with the exception of 2012) all the way to 2019 had a month or more where interest rates were in the 4 to 5 percent range. Combined that is 10 years.
Overall, when we look at all the years from 1971 to 2022, there were 31 of those years that had a month or more that was 8% or higher. If you look at years that had months that were 7% or lower, it is 21 years. Approximately 60% of the last 52 years had a month or months that had a 30-year fixed interest rate of 8% or more!
What am I getting at? It is not unusual to see these interest rates and in fact we have seen them more than the lower interest rates over the years. Yes, no one likes to pay more on their mortgages if at all possible but don’t you think that those people refinanced their homes once the rates were to their liking? I do and in fact I know lots of people who did. What I am getting at is that home buyers who need a home will still go out and purchase a home even if interest rates are higher. This factor alone won’t deter those who really want to purchase another home.
I want to also let you know in 1981 when interest rates hit a high of 18.63%, My team and I were still helping buyers get into the homes they desired. My advice, if you really desire to purchase a home don’t wait to see if you can “time the market”. You may well be waiting a long time and could face even higher rates. That might be scary! This is still the right time to buy and remember if rates go lower, the option to refinance always there.
If you or someone you know needs more information about selling or purchasing a home, please give me a call at 214-676-8040. Roxanne DeBerry with The DeBerry Team of Keller Williams Realty.
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