Should You Wait for Rates To Drop?

 

Don’t let fear take over—waiting for a better rate may hurt even more.

Today I want to share some perspective regarding how insanely interest rates have jumped lately. I was recently talking with a great client and friend of mine, Bruce Barker, who put it so perfectly. He said, “Historically, the average interest rate has been 7.6%.” 

To have an average, you need something to be lower, and you need something to be higher. We have had extremely low interest rates over the last few years, and now they’ve risen to 6.5%. That's been a significant jump, but they’re still below the historical average. It's possible that interest rates will go above the average of 7.6%. If you’re thinking about holding off until interest rates come down, I want to pause and reconsider. I hear many people say those things, but based on what I'm seeing in our economic outlook, I don’t believe rates will drop any time soon.

"Get into something now and build your equity."

If you can afford the mortgage payment on a property, lock it in. If the interest rate does come down at some point, you can always refinance. You shouldn’t gamble with your future and the house that you want for your family because you’re hoping interest rates come down. Real estate doubles every 10 years, so get into something now and take advantage of being able to build equity over time.

If you have any questions, don't hesitate to reach out to me by phone or email. I’m here to serve you.