Wow - that headline from Business Week sure grabbed my attention.
Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth of Business Week.
He goes on to write, "Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates."
The average 30-year fixed-rate loan with no points or fees has been around 5%. Rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.
Roth puts this into historical perspective:
"First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.
Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low."
Roth continues to illustrate how a 2% interest rate increase will cost a homebuyer an additional $48,000 for every $100,000 borrowed over the course of a 30-year fixed-rate loan.
For the full article, click here.
For more detailed information about local rates in the DFW market, call Eileen Austin at Home Team Mortgage Company.
Interest rates are indeed at record-breaking lows. If your credit is not clean, it's time to get the soap out!
Rates will probably go up next year, too. Another reason to buy now and avoid the rush!
Angie: When I saw the headline of that post you mentioned... I'm sorry... but it really turned me off. I know it was done on purpose to create attention... but in my opinion, negative attention is not better than no attention at all.
Thank you, Karen, for letting me know. I had hoped when I had the "?" at the end, that it would translate that it was a quoted sentiment. I should add quote marks to make it more clear.
Angie: Oh, hon, I was not aiming that comment at YOU. Not at all. And, I am sorry if you thought that ! My displeasure was with the original article you see when you click on the link. And... a post with this headline was on Active Rain last week... and I reacted negatively to it, as well. I was NOT aiming this at you. Have a great weekend.
By the way... I see you are relatively new to Active Rain... sooo... here is my belated Welcome to Active Rain. This is a great place to learn, new meet new people in the business, and to expand your personal referral base. Again... Welcome to Active Rain.
If there is anything I can help you with... as far as blogging, and Active Rain stuff... please do not hesitate to ask. I've been here awhile... and I am cglad to share what I know. Take care...
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One thing I would suggest... right now... is for you to join more groups than the one you have listed under your "groups."
If you look through my most recent posts... you will find an entire post I wrote on "groups"... on what they are for, and how they will help you. Again... take care...