It's a BUYER'S MARKET

Today's mortgage interest rates may never be this good again
Posted: 8/9/2010
Columbus Board of REALTORS®

Today’s mortgage rates are at historic lows but history suggests they won’t stay there. Because home buyers may never see these rates again, they need to BUY NOW, says Marc Roth, president of Home Warranty of America.

In an article written for Business Week, Roth states, “If you want to buy a house, now is the time, and if you don’t act soon, you will regret it. Here’s why: historically low interest rates.”

According to Mortgage-X.com, the average mortgage interest rate in 1970 hovered around 7.25 percent. Shortly thereafter, it began crawling upward, landing near 10 percent in late 1973 and settling back to nine percent between 1974 and 1976. Although high by today’s standards, people in 1976 would have been happy with nine percent.

From 1977 to 1981, the 30-year fixed rate was near 18 percent. Rates jockeyed for several years, hitting 11 percent in the late 1980s before slowly declining in the 1990s.
 Era Mortgage Interest Rate 
July 1970 7.00
July 1980 12.19
July 1990 10.04
July 2000 8.14
July 2010 4.59

Every quarter of a percent counts! On a $200,000 loan with a 10 percent interest rate, the monthly payment would be $1,755. With a 4.5 percent loan, the payment would be $1,013.

Take advantage of today’s 4.5 percent interest rates or it may be another 20 years before rates are this favorable again. Combine that with the reasonable home prices we are seeing today, and this era exemplifies what we mean by a “buyer’s market.”

Contact the Sullivan Real Estate Group today.   We will assist you in working with a lender to pre-qualify you prior to starting your home search.  Call 614-944-5988 or email your request at Sullivan@kw.com