Here’s a look at how far interest rates have dropped over the last 50 years.
According to a recent survey, two-thirds of young homebuyers were waiting until interest rates dropped to purchase a home. As real estate professionals, we know that today’s rates are already at historic lows, but few people pay the same attention to the market as Realtors do.
Young homebuyers are new to it all—they’ve never bought a home before, they don’t understand the history of interest rates, and they don’t know all the real estate lingo that goes around. To give you an idea of how good our rates are today, we’re going to break down a 50-year history of interest rates.
In the ‘70s, interest rates hovered around 9%. They shot up to 16.96% in the ‘80s, then dropped to around 7% in the ‘90s. The 2000s saw rates around 5%, which dropped to 4% in the 2010s. Now, we’re right around the 3% mark. When you look at it from this perspective, you can see just how low our current rates truly are.
At this point, rates are more likely to rise than fall in the future, so waiting until rates drop may not be realistic. Instead, now is a fantastic time to get off the fence and start looking for homes. Further, a quarter of young homebuyers underestimate their buying power by $150,000, so you can likely afford more than you might think.
If you’re ready to buy a home, or if you’d like more information about our market, feel free to reach out to us. We look forward to hearing from you soon.