Let’s talk about everyone’s favorite subject in the whole wide world: home loan interest rates. Woohoo!  I know, I know, it’s about as exciting as getting a root canal, so I’ll be brief. Please bear with me.

The all-time historic low for a 30-year fixed rate mortgage was 2.67% in January of 2021.  By the end of the year the rate had climbed to over 3%.  Currently, it is at 3.69% and is still expected to rise in 2022, according to most economists in the know, to somewhere around 4%.

This has put a lot of home buyers on edge.  Some have false hopes that they’ll get better.  Some think that they somehow missed out on the good rates.  To these people, my answer is simple: Look at the chart above.  It will only take two seconds to realize that the only time in the last 50 years that the rate has been below 5% is between 2012 and today.

Be thankful that this isn’t 1982 when people were getting 30-year fixed rate home loans at 18% interest.  I got my first home loan in 1999 and got the outstanding rate of 6.875% and I was thrilled at the time.

Yep, you missed out on the mid-twos.  Don’t miss out on the mid-threes.

If you’re paying rent, you’re making your landlord wealthy each month.

If you’re paying a mortgage, you’re making yourself wealthy each month.

It really is that simple.

Note:  The chart above gets updated weekly on the Freddie Mac website.  This data is from Feb. 10.  You can get the current data online at http://www.freddiemac.com/pmms/. By the chart on the top left click “all.”

Article by Bill Sauneuf / John L. Scott Real Estate, Yelm

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Equal Housing Opportunity