Yes, you read the headline correctly, it EASIER to own a home than it was in 1983.
How in the heck is that possible??? Interest rates. In the ’80’s, home loan rates were incredibly high. In fact, they peaked at over 18%!
Now, we understand the today’s market is a bit freaked out by the sudden rise in interest rates but we MUST keep the numbers in perspective. We’re still below 5%!! In addition, just about anyone with a brain predicts that rates will continue to climb. Not into likely into 18% range, but certainly into the 6-7% range in not-too-distant future. Take a look at the image below. It does an excellent job of illustrating the approximate comparison of principle and interest payments over the last 40 years.
If you are even a LITTLE interested in buying a home now or in the next few years, call us and we’ll help you understand your options. Exciting stuff!!
