My various mortgage team members are always telling me that we really are in a special time for the real estate market. From a lender’s perspective, mortgage interest rates are “king”, and after seeing and understanding the pictorial of that message, I too want to emphasize the relevance of mortgage rates right now…! We saw 50-year lows in Sept 2010 and we’re seeing a slight increase over the past few months, but look at the big picture…the 1980’s saw upwards of 19% mortgage rates, and people still knew it was better to buy a home than rent. The long-term equity growth was still worth it in the 80’s.
So what does that mean now in the 2010’s? Your equity growth potential is HUGE right now. (Even Warren Buffett is on this bandwagon…) Your buying power is greater now more than ever…as mortgage rates increase, your buying power decreases…today you can afford more home than you will with the next mortgage-uptick. Mortgage rates are still at historic lows and eventually will increase…home prices have already hit the bottom of the economic housing bubble and are slowly working their way up in the Seattle area. Are you going to kick yourself in 5 years (or less), wishing you would’ve taken advantage of the current housing prices and the mortgage rates?