A History of Interest Rates

With interest rates for Costa Mesa real estate housing squarely in the mid-3 % range, it’s hard to imagine what interest rates in the double digits ever looked like. I know looking back in say 8 or 10 years we will consider this time to be the golden era for rates.

 

I moved as an 11-year-old in 1981 to Pennsylvania, and at that time my parents bought a house and got an interest rate of 17.9% at the time, which was a deal (!). The home was purchased for $165,000, and the mortgage was about $1950 per month.

 

Prices are finally going up! demand is strong, and inventory is very short on supply home loan of about $450,000 will provide you exactly the same result today!

 

Amazing how much rates can change. Unfortunately, we will more than likely see higher rates in the future. The rates we have now are simply unsustainable. While the Fed just spoke today that rates will likely not move in the next three years, inflation will eventually force rates to push up.

 

Golden era people, money is cheap. If you are thinking of buying a home, historically you simply could not do better if you are using a loan to purchase a home, especially with adjusted home prices since the recession.

 

If you need help or would like to discuss Costa Mesa real estate, feel free to call me at (714) 743-9882 or E-mail me.