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. My first house I paid over 11% on my loan, and I am in the business!!! When you look at the chart below, you will see that RATES ARE GREAT!
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. We are in great shape and today's rates make financing your next home Very affordable!
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. So to sum up: We are in wonderful shape right now. Mortgages are near historical low levels (2003 was called a 40 year low).. and Homes are affordable. What more could we ask for?
Have a great day!
Rob
(732)223-1630 x102
Real Estate Mortgage Network
Rates are great, and mortgages are available...calling all buyers and sellers. Great info Rob! Hope to see you on the 19th at the WCR meeting!
Hi Laura, I just picked up a flyer today... I should be there.
I hope we see a 4th Qtr drop!
I think we will see the 4th quarter drop a little
Hey Rob,
I don't believe rates are an issue. The "challenge" is restoring Consumer Confidence. I see in your next post, your talking about gas prices dropping below $2.00/gallon (almost half price in 6 months) and that hasn't restored Consumer Confidence, so why would another drop in rates? We have to do many of the things we heard yesterday, including but not limited to, removing the unmotivated Sellers from the market. Only when home prices are stabilized will the Consumer consider interest rates a priority.
Jim, My point was that we are in great shape with interest rates, and that should not be a barrier to some one buying a home. And Gas just dropped below $2 in NJ a week ago. It will take some time to filter down but I am sure that people are much happier filling up their SUV and having it cost less than $50 vs over $100 at its peak. Happy consumers have more money to spend. Consumer confidence last month was at an all time low, Being the eternal optimist I always look for the bright side of things. And there is a lot of "good" to see if we just open our eyes to it. I do not expect to see consumer confidence improve instantly over night. but there is light at the end of the tunnel.
Peak prices had me at very close to $100 filling up my SUV to go to Vermont. At exactly a full tank each way, it was almost $200 round trip. At half price, that means I can buy 1.5 more ski tickets for the same total. Would much rather spend my money on ski tickets!
Of course, more ski tickets means more lunches at the mountain, more dinners out and more money into the local economy which is a good thing. Multiply this by thousands of people.
Rob, I agree with your friend from Coldwell Banker Flanagan Realty He is right... The interest rates are great but we need the consumer confidence and loans approval rates up.