Broker's Corner July 15

Posted By Allison VanderVeer @ Jul 19th 2017 12:30pm In: Local Market Insight


Many years ago, when I broke into real estate sales, mortgage interest rates were pushed to nearly 19% for a brief period; that was the end of 1980. I had borrowed money for one of my first homes at 11.125 % in 1979 and considered myself lucky!

But these historically high rates began trending downward, making housing more affordable for more people.Rates hovered around 12% in the late 80’s, and the 8% range prevailed during most of the 90’s. The turn of the century saw rates begin to drop into the range of today’s fabulously inexpensive range under 5%; 3.5% to 4.5% is where we have been for the last several years.

It’s fair to assume you and I couldn’t afford the housing we buy today were it not for low rates. For example: a $250,000 house at 10% mortgage rate in 1990 would cost you about $2,150 / month. But that same payment today at 3.625% will buy you a $425,000 property.

Local mortgage brokers seem to agree that rates will remain fairly low for the foreseeable future. Ty Peacher with Brand Mortgage is one of our mortgage professionals that believes this. This high 3’s to mid 4’s rate range is a great stimulus for our business.

A final note on buying real estate in these Golden Isles. It works best, in my experience, to use a mortgage broker or bank where the property is located. And, it’s better to use an attorney in the local market for closing your sale. If you supply timely information to your loan and lawyer people, then you’ll find your closing to be relatively smooth sailing. The other part of the buying equation is securing the services of a knowledgeable real estate broker; call us anytime!

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