If you have read my profile you know that I have been in the business for over 20 years, I have seen a lot of ups and downs since the late 1980s both in business and in interest rates. One thing that has always caused me to bite my tongue is a conversation on rates. How often have you heard a client say : "Rates are high"? I just bite my lip and laugh to myself. My first house I paid over 11% on my loan, and I am in the business!!!
I know that I look at rates today and think they should be lower based on economic conditions. But historically speaking we are still quite low. The average rate over the past 20 years is 7.68% and for most of this year we have been solidly in the 6's and keep flirting with the high 5's. So: DARN IT... Rates are GREAT!!!
And keep in mind that this chart cuts off the REALLY high years in the early 1980's when the rates were well into the teens, So a 30 yr average is even higher.
Things are GREAT! we just need to be focused on the positive aspects we have to deal with and pass that information along to our clients as well.
Have a great day!
Rob
Real Estate Mortgage Network
When I look at this chart It brings things into perspective. It could be a good tool to use for giving to potential buyers, or for listing presentations...
Thanks for this post! A great way to look at it, we need all the positive feedback possible! Do you mind if I shoot the chart around in a couple of e-mails?
Thanks for the reality check. People tend to have a very short memory, and sometimes don't really understand how good they have it. Yes, times are tough right now for many people who bought homes in 2004-2006, but that too shall pass. A lot of people got crazy loans (100% financing, and 2 year arms), and put all of their income into their mortgage. I hope it was a lesson well learned.
Wonderful graph! Thank you! I love this sort of thing. It's perfect for our clients to see exactly where we are at (and hopefully appreciate it).
I am re-blogging this AND posting it on my company website.
BTW, did I also mention: This is going to the top of the Optimist board. Thank you Robert!
Thank you Mirela!
I was also going to make this into a pretty flyer. I think it could be a great tool to add to a listing presentation, or to share with your buyers.
Robert: I agree! With your permission, I think I'll ask my assistant to do just that.
Sure Mirela, I will email you one once I get a chance to put it together as well.
very interesting post here. Thanks for this information
Thanks
Don
Rob, Great Chart! I am also going to re-blog it on my blog too!
P.S. As an investor, I am always happy with anything less than 8% (all my stuff is under 7.5 with only one or two at 7.5). I've got a lot of stuff in the 6's that I will NEVER refinance, but to me as long as the rate is in the somewhat reasonable to reality range, I have never been one to nitpick over a quarter here, a half there. Takes too much of my time to analyze things with a fine tooth comb. Some people agonize over this stuff!
P.S.S. Yes, the color chart is pretty! :)
Thank You Lisa! sleeping better???
A resounding 'Yes'!
After six sleepless nights, slept 25 of 34 hours. I should write a blog post on caffeine!
Hopefully you get to a more normal schedule this week!
I am off to visit some Open Houses today.. Wish me luck!
Luck!