Yes, people in the real estate industry have been talking about raising interest rates for years now. Let’s face it – who knew that rates would have remained this low for this long.
I bought my 1st home in the 90s with 8.75% interest rate and thought that was great. I re-fied my 1st condo in Washington DC down to 5% from 6.5% and was excited. When rates dropped even lower – I sold and bought something bigger. That was over 4 years ago and rates have jumped (well maybe you should call it a hop) around; but are even a little lower now. Who knew?!
Experts (myself included) have warned that rates will increase. Well they will – I promise. Someday.
According to news from the FED and all the experts and pundits – it sounds like rates will remain close to where they are until September. Maybe? But with world events and our economy so tied together – who knows really?
I think the overall good news is this: rates are CRAZY LOW. Take advantage of this now.
Don’t want to move for a few years? Have you thought of buying that retirement home now? Prices are still low in 2nd home/vacation home spots – rates are low; buy it now and rent it out for a few years until you are ready to move in yourself!
THINK ABOUT THE MATH
Loan $400k @ 4% = $1909.66 a month
same Loan @ 5% = $2147.29 a month
oh and that “GREAT” rate I had in 1995? @8.75% = $3146.80
I couldn’t afford my current home at that rate! Be smart in your long-term planning !