Now is the Time to Buy - Comparison of Interest Rates in Years Past

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

Home buyers love to talk about the interest rates!    Here is a brief post on "days past" with the interest rates by the decade Realtor.com had published.    Back in the last '90's the Denver real estate market was HOT and homes did not stay on the market long, and the rates hovered around 8%.     The days of 3.25% are gone, and buyers should no longer be thinking rates will decrease again.    

Interest Rates on the Rise 

  • 1970s
    Average 30-year fixed-rate mortgage: 8.86%
    Approximate payment on a $200,000 mortgage: $1,589
  • 1980s
    Average 30-year fixed-rate mortgage: 12.70%
    Approximate payment on a $200,000 mortgage: $2,166
  • 1990s
    Average 30-year fixed-rate mortgage: 8.12%
    Approximate payment on a $200,000 mortgage: $1,484
  • 2000s
    Average 30-year fixed-rate mortgage: 6.29%
    Approximate payment on a $200,000 mortgage: $1,237
  • 2014
    Average 30-year fixed-rate mortgage: 4.36%
    Approximate payment on a $200,000 mortgage: $997

 

What will 2015's interest rate bring?     With a full percentage increase from 2013, can you afford to wait another year?    Let Joan Cox with Metro Brokers - House to Home, Inc. guide you through the home buying process!

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Susan Jacobsen 03/28/2014 10:38 AM
  2. Shanna Hall 04/04/2014 06:34 AM
Topic:
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Buyer Information - What Buyers Need to Know in Today's Market
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Ambassador
712,269
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Whooo, I remember those. Bought my first house in the late 70s with a 9% interest rate, and 12% on our equity line for a re-fi. Got into an adjustable in the early 90s when rates started out at 8.5%. My latest rate is 3.87%. Sweet!

Mar 28, 2014 11:56 AM #18
Ambassador
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     In the year 1987, at a Real Estate Convention, I heard Arthur Laffer (Economist for President Reagan) state that Interest rates would go under 10% by the early 1990's.  Rates were around 13% at the time. The crowd laughed him to scorn.  But he was right! 

Mar 28, 2014 11:57 AM #19
Rainmaker
1,317,707
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I think this puts things in perspective.  It is important for buyers to have some perspective regarding interest rates.

Mar 28, 2014 12:35 PM #20
Rainmaker
2,825,810
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
Now is the time and all we have is now as the philosopher say. Love and light, Laura
Mar 28, 2014 03:07 PM #21
Rainer
166,665
Andy Chaudoir
Professional Inspection Services - Georgetown, Texas - Georgetown, TX
Your Home Inspection Connection in Central Texas

Hello Joan - I've got my fingers crossed that they stay low until we get our home built this year.  Thanks for the post and have a nice weekend.

Mar 28, 2014 03:58 PM #22
Rainer
145,030
Jeffrey Hogue
Weichert Realtors Neighborhood One - Wyomissing, PA
Berks County Real Estate Pro

I agree that now is thetime to buy but the chart leaves something out...The price of homes in those eras.

Mar 28, 2014 04:47 PM #23
Rainmaker
4,432,589
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the information. I will share it with others.

Mar 28, 2014 09:16 PM #24
Rainmaker
3,296,343
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

This is a great reference Joan. Those numbers should really  wake up some buyers who are still sitting on the fence!

Mar 28, 2014 09:33 PM #25
Rainmaker
416,579
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate

Great info Joan. With the Fed reducing loan purchases the rates are going to adjust to market pricing. There is no place for them to go but up. 

Mar 28, 2014 10:46 PM #26
Rainmaker
1,395,977
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Joan, it does appear like the interest rates are bottoming out over the last decades. There is only one other direction to go and that is up.

Mar 28, 2014 11:13 PM #27
Ambassador
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Joan, Now would be a great time for anyone to purchase a home. How well I remember those high interest rates back in the 1980's when I bought my first home in Denver, CO.

Mar 28, 2014 11:43 PM #28
Rainmaker
2,533,285
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Yes to this post and if one is waiting for a reason, your waiting too long...NOW says it all

Mar 29, 2014 12:24 AM #29
Rainmaker
186,472
Kathy Smiley
Rodeo Realty ~ Fine Estates Westlake Village - Westlake Village, CA
Westlake Village, CA - "Making YOU Smile!"

Hi Joan. It's like the industry has been running a "half-price" sale! We need more merchandise and more shoppers ready to take advantage of today's prices and rates! Have a great weeked!

Mar 29, 2014 01:54 AM #30
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

In 1980 my loan was a 14.78% adjustable rate with a 6 point cap, and I was paying 22% on my business loan. I think that a 5.5% rate sounds pretty good to me.

Mar 29, 2014 02:03 AM #31
Rainmaker
623,723
John Marshall - FORE!
LoKation Real Estate - Cherry Hills Village, CO
Specializing in Golf Course Properties

Joan -  this tells it all, if ever there was a good time to buy, now is that time.

Mar 29, 2014 04:33 AM #32
Ambassador
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Joan  Great comparison, but interest rates wer 17 t0 20% when Arthur and I were licensed in 1976.  The peanut farmer and Naval Academy graduate was POTUS

Mar 29, 2014 07:36 AM #33
Rainmaker
120,864
Tessa Skeens
Hampton ReDesign, Home Staging and Redesign - Grand Junction, CO
Staging For Realtors, Builders & Investors

Joan, I was just talking to someone this week who said rates were predicted to jump this year. You really have to have a crystal ball to see what may happen, but I remember how high rates were in the 80's and it's still a bargain out there.

Now if only inventory weren't so tight!

Mar 29, 2014 08:55 AM #34
Rainer
535,574
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Joan, the numbers tell the story. This truly is a great time to secure a Mortgage. Thanks for an informative post.

Mar 30, 2014 06:18 AM #35
Rainer
329,594
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

America is to dumbed down to think clearly and will only wake up after the fact. Interest rates will be at 6% before years end .

Mar 30, 2014 01:47 PM #36
Rainmaker
432,374
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

Joan- I love this and I am reposting this!!!  I wonder what is going to happen when interest rates go up- people are going to freak!

Apr 04, 2014 06:32 AM #37
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Rainmaker
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Joan Cox

Denver Real Estate - Selling One Home at a Time
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