Hey, so let’s talk about everyone’s favorite subject in the whole wide world… Home Loan Interest Rates!! Woohoo!! I know, I know… Its about as exciting as getting a Root Canal, so I’ll be brief. Please bear with me.
The All-Time Historic Low for a 30 Year Fixed Rate Mortgage was 2.67% in January of 2021. By the end of the year the rate had climbed to over 3%. Currently, it is at 3.69% and is still expected to rise in 2022, according to most economists in the know, to somewhere around 4%.
This has put a lot of home Buyers on-edge. Some have false hopes that they’ll get better. Some think that they somehow missed-out on the good rates. To these people, my answer is simple… Look at the chart above. It will only take 2 seconds to realize that the only time in the last 50 years that the rate has been below 5% is between 2012 and today!
Be thankful that this isn’t 1982 when people were getting 30 Year fixed rate home loans at 18% interest. I got my first home loan in 1999 and got the outstanding rate of 6.875% and I was thrilled at the time.
Yep, you missed out on the mid-two’s. Don’t miss out on the mid-three’s!
If you’re paying rent, you’re making your landlord wealthy each month.
If you’re paying a mortgage, you’re making yourself wealthy each month.
It really is that simple!
Note: The chart above gets updated weekly on the FreedieMac website. This data is from February 10, 2022. You can get the current data here: http://www.freddiemac.com/pmms/ and by the chart, on the top left, click “ALL”.