Interest Rates keep them in perspective - Darren Stewart OakStar Bank

Services for Real Estate Pros with Mortgage Investment Services Corporation

I have spent many a blog post pointing out that right now the market is volatile when it comes to interest rates and the speed at which they change, but not only the changing rates we have seen loan programs changing more than some rate sheets as of late.   I think it is important for everyone to keep in mind that my own comments are a picture of the market condition, a snapshot, and it reflects viewing todays market in the short term.  Having said that I wanted to point out some long term statistics, on average over the last 20 to 30 years an average home loan rate would be approximately somewhere between 7.50 to 8.00 percent. If your fairly new to the industry or began your career in the last 5 years this rate seems down right punitive.  If you have been in the industry for a very long time or approaching retirement you can remember home loan interest rates at 10% and beyond.  I am somewhere in the middle this marking my 20th year in the banking industry, I happened to start my banking career at 8am on 8/08/88, I am sure those of you who are into numbers may say there is some kind of meaning there, when I got into mortgages in 1997 I was working 12 hour days refinancing rates to 7% 30 year fixed loans and everyone was ecstatic that it had gotten so low.  My point is in the last 2 months the range on 30 year fixed loans has been anywhere from 5.50 to 6.375, this week we happen to fall around the middle of that scale.  Please keep in mind while rates can change rapidly we are by historical standards at a very opportune time to finance a purchase or refinance your home.  We have a supply of homes that are on the market and when there is this supply the opportunities abound.

Darren Stewart

OakStar Bank



Comments (2)

Tom Vanderwell
Straight Talk About Mortgages - Grand Rapids, MI


 Very well put.   Historically we aren't at the lows, but we are near the bottom.    I had to smile in that in June of this year, it's 20 years for me.   I spent the first 3 selling real estate and the rest writing mortgages.



Apr 19, 2008 11:33 AM
Alan Ford
Keller Williams - Vancouver, WA

 Darren, Thanks for the info.  I have been talking with buyers who are so surprised when I tell them the current interest rate is around 6% depending on the day.  This is a great perspective when we are talking with our clients.  Sometimes they need to be reminded or educated about the "good old days".



Apr 19, 2008 11:36 AM