In case you didn’t know, the past year saw the lowest mortgage rates in the history of real
So, if you have clients who are waiting for those rates to come back down or go down more,
they may be waiting a very long time.
What’s important to remind your clients is that while homes right now may be less
affordable than they were a year ago, they’re still extremely affordable.
If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average
rates by decade:
- 1970s: 8.86%
- 1980s: 12.7%
- 1990s: 8.12%
- 2000s: 6.29%
- 2010s: 4.09%
While experts don’t project that mortgage rates will rise a huge amount, any increase would
mean an increase in monthly mortgage payments.
A couple decimal points may not seem like a lot to most people, but it could make or break
If you have buyers that are playing the waiting game, the best advice you can give to them is
that a rise in mortgage rates coupled with continued home price appreciation only means one
thing: paying more for the same house they’d buy now.