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SO YOU THINK INTEREST RATES ARE LOW NOW??

By
Real Estate Agent with Coldwell Banker Cascade Real Estate

Well they are, but here is an interesting chart from a friend at Peoples Bank (Darel Ansley who blogs here) that shows a very interesting perspective on rates... take a look.

By current standards rates are low... but they have been lower... in the late 40's to about 1950 they were lower and helped fuel the growth that was to come later on. Also i remember doing mortgages during the 80's when the rate spiked... water cooler conversation was "gee if rates would just get back down to 12% we could really do some business"... and we did

Throughout all of this we adjust. Regardles of rates and economy there are always people that need to buy and sell... our job is to take care of them!

Posted by

Perrin Cornell, Broker, ABR

Century 21 Esclusively

135 N. Missin

Wenatchee, WA 98801

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Andrew Lietzow
IaREIA | Iowa Landlord Association - Des Moines, IA
MBA-Exec Dir Iowa Real Estate Investors Association -

Excellent points, Perrin.  I remember camping out all night in front of a bank, to help a buyer get a loan at 2% less than the going rate, back about 1982.  Iowa Housing Finance Authority had provisioned about a million, or two, to offer these discounted mortgage rates for qualified buyers, and it was first-come, first-served.   Once the money was gone, it was gone -- so people started waiting at the door the night before.  Quit a vigil, but now a memory about what extraodinary service we REALTORS provide our clients.  

I do something similar today, by working with 1st-time homebuyers, looking to rehab a house with an FHA 203k rehab loan.  Not enough money in it for most REALTORS, but I like helping my buyer clients earn "instant equity" by buying something ugly and turning into something very liveable.  

What a great time to offer great service to our clients.   You're right about that!   

 

Nov 01, 2011 02:28 AM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Thanks Andrew. I spend a lot of time working with buyers that are "challenged" in one way or another..it is rewarding and begets more business. I was running secondary market operations for a small thrift back when rates went really high. Washington also came out with a mortgage program fro state residents and we bought a commitment for a couple million bucks (of course home loans were about 50K then) gone virtually overnight!

Nov 01, 2011 06:16 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The 1980 market was a super one to cut your teeth, to have your real estate newbie heels held to the fire to sink or swim. It made your appreciate easier markets and never to forget what a tough one felt like and to prepare for the next one in the real estate cycle. First home mortgage rate was 12.25 when 16% variables was the going deal on the mortgage buffet of bank rates. Felt like Donald Trump proud to have secured one fixed at that rate.

Nov 05, 2011 03:13 AM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Yeah... it was tough... products were simpler though and I think underwriting if nt easier was more straight forward...

Nov 05, 2011 04:45 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Perrin, The house that I now live in, was purchased when Jimmy Carter was President.  Rate was 21%!  We were the only home being built, by the most popular builder (U&R Construction).  We got a good buy on the new build, because of the high rate and because the builder wanted the work!

Nov 15, 2011 11:16 PM