The thought of mortgage rates being on the rise is a frightening one, particularly for new buyers looking to enter the real estate market. However, as Chief Economist of the National Association of REALTORS Lawrence Yun points out in a recent Forbes.com article, we all need to keep the current rates in perspective.
In his words, “Taking a look back, let’s recall how high rates were in the distant past. In the 1970s, they averaged 8.9%; in the 1980s, 12.7%; in the 1990s, 8.1%; and in the first decade of the new century they came in at 6.3%. The in-and-around 4% rate is only a recent phenomenon from the year 2011 to today.”
Yun recognizes that young buyers have in recent years seen rates dip below 4%, but points out that average income levels are also on the rise, making the gradual mortgage rate climb less painful.
Make it your job to put current rate increases into perspective for your clients, especially for younger buyers who may have never known rates to be any higher.
Read more of Yun’s thoughts here, and share with your buyers who are unsure whether or not now is the time to take the leap!