Property owner have a constant quest to grab the lowest interest rate available, but do they succeed?
We all seem to struggle to predict where interests rates will be tomorrow, causing streets among homeowners. Fortunately, the US has seen some of the lowest interest rates ever seen in the history of mortgage loans.
To put things in perspective, today’s rates are comparable to rates available back in the mid-1960’s. That is more than 50 year! ago, when the cost of living was much lower than today.
To get my point across let’s go back to 1965 when the cost of gas was $.31 per gallon and $.05 for a first-class stamp. Today (2012) those are $4.25 and $.45 respectively. On the other hand, mortgage rates are now the same as in 1965.
Buyers often ask me about interest rates, should I lock now? should I wait to see if it drops more? My response is very clear, money is cheap, at least when we talk about mortgage loans. If buying a home is dependent on getting the ‘best rate’ one should understand that chasing a better interest rate can jeopardize the purchase of your home.