It’s 1972, and you're considering buying a house, but you want to wait the interest rate to come down.
In 1972, the housing market was showing promise, but interest rates were a bit on the high side. The historical average for mortgage rates was around 7.81%. While these rates may have seemed steep at the time, the housing market was still vibrant, with home values steadily appreciating.
Fast forward to 1993, and you're still waiting!! That's right, you waited 21 long years! And home values increased on average 4% year over year for 21 years.
The median house price in 1972 was $27,600, In 1993 the median house price was $126,500
The Cost of Waiting: Missed Opportunities The consequence of waiting was clear - missed opportunities. Those who waited could have been homeowners for two decades, building equity and enjoying the benefits of homeownership. Instead, they watched as home values continued to rise, making the dream of owning a home more challenging to achieve. Today's Realities: Home Values on the Rise The historical average mortgage rate of 7.81% in 1972 might seem high today, but the lesson remains relevant. Interest rates are a critical factor in homeownership, but the wait for significantly lower rates can be a costly one. Home values continue to increase, and the current real estate market is still vibrant. Waiting for rates to drop significantly could mean missing out on the chance to build equity and secure your future. Reach out to us today, and let's explore the possibilities of homeownership in the current market!