Here’s a look at mortgage interest rates from a historical perspective.
I’ve been selling real estate for 17 years. When I first started, mortgage interest rates were in the 8% range. Some of my colleagues remember them being over 10% before that. We used to think a low interest rate was anything under 5%, but I’ve seen rates well under 3% over the last few months.
The cost of money has never been lower. If you’re getting a rate at 2.85%, you’re paying roughly $25 per month for every $10,000 of your purchasing price. When you look at buyers who are paying extra to buy homes, this is something they point to. They may be offering $20,000 over list price, but it’s only going to cost them an extra $50 every month.
The one mistake everyone makes is going with the high end of what they’re approved for. You should be looking at homes based on the monthly expenses you’re comfortable with. Your buying power has never been stronger than it is right now, so it’s a great time to buy.
If you have any questions about your specific situations or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.