People are constantly asking me "When do you think mortgage interest rates will come down". The honest answer is that nobody in the real estate industry knows for certain when interest rates will drop. There is always a chance that interest rates go up instead of coming down. There have been so many cases over the years where even the so called experts predict that interest rates will come down and the Feds make the announcement that they are increasing interest rates. The experts are often wrong because there are so many different factors that contribute to the Fed rate and that contribute to the 30 year mortgage rate.
This video touches on something that you won't hear from someone who is new in the real estate business because they haven't likely experienced a wide range of mortgage interest rates. When I bought my first home nearly 40 years ago, the interest rate was 11.5%. You might be thinking that I was crazy to pay that much but what you probably don't know is that the interest rates were previously over 17% in the early 1980's so I was able to get a lot better house at 11.5% interest than I could have bought years earlier when the rates were over 17%. Knowing this changes your perspective and the same thing applies today.
You may be wondering why I purchased a home when the interest rates were so high. The answer is very simple, I wanted a home of my own because I knew that having my own home would create a lot of personal freedom. I wanted my own place and I wanted a home with my own garage space (I like cars). I wanted a place where my friends could come over and hang out, where we could BBQ, entertain and have fun together.
Was my first home what you would consider a dream home? Absolutely NOT! However, it was where I started. I upgraded the home and I eventually resold it at a small profit and used that money to buy a nicer and bigger home in the same neighborhood. Remember, we all start somewhere and the interest rate that is available when you buy your home is what helps you actually get your foot into the door of homeownership.
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Sam Miller of REMAX Stars Realty 740-397-7800 SamMillerSells.com
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