PANIC OVER RISING RATES
Borrowers, Realtors, investors and the markets as a whole all seem to be in a panic over rising interest rates.
The only people who should be worried, however, are “refi-ologists” (businesses and companies who focus only on refinancing).
For starters, higher rates can be a good thing for several reasons, as I discussed in this previous blog: Why Higher Interest Rates Are Good.
ANY RATE UNDER 6% IS A GIFT FROM A HISTORICAL PERSPECTIVE
More importantly, as we repeat often, any rate under 6% is a pure gift when you look at rates from a historical perspective.
HISTORICAL RATE TABLE
This table from Freddie Mac shows average interest rates over the last thirty years.
A few choice selections are set out below. Not only are rates extremely low now, but loans are much, much cheaper as well.
|March of 2017||4.2%||0.5 Points|
|April of 2014||4.34%||0.6 Points|
|2008 (entire year)||6.03%||0.6 Points|
CONCLUSION: The ability to lock in a historically low rate (anything under 6%) is another huge benefit from buying now.
Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646