As a professional real estate broker who's been in the business of finding people their homes and real estate investments for quite a lot longer than 30 years, people ask me all the time where interest rates are going. They intend to wait until they're lower before they buy.
Lower. Than the current 4.00%.
Let's have some fun with this. Just two facts for your entertainment.
1. The first home I sold in 1984 was to a veteran in Bremerton, WA with a VA loan. The interest rate on that loan was 18.50%. Go ahead, laugh. I'm not kidding. 18.50%.
2. When the Bank of the United States was created by Alexander Hamilton in 1791, creating for the first time in this country a relatively stable marketplace for mortgage money, interest rates hovered around 7.00%. Think about it. The risk of borrowing money in a brand new country with a brand new financial system, no standing army, 97% farmers and the individual states still wanting to print their own money because they didn't trust the country to last. 7.00%.
How bad do you believe the economy has to get to drive rates lower than 4.00%?
Truth is, the current market is solid and improving. The Federal Reserve has publicly stated that it intends to raise rates three times in the coming year. If you're waiting for interest rates to go down, better have a bag lunch. You may be in line for some time.
Call me with your questions anytime. I'd love to talk.
Enjoy the day,
WK Real Estate