Interest Rates

While buyers have been sitting on their hands waiting to see what happens in the real estate market, mortgage interest rates have been dropping for five straight weeks.  While this still doesn't make them the lowest interest rates ever seen, it's pretty close!

Historically, these rates are truly exceptional!  Take a look at what interest rates, in general, have looked like over the past 20 years.

• March 1985: 13.15%
• October 1987: 11.12%
• November 1990: 10.01%
• January 1995: 9.4%
• April 1997: 8.31%
• June 2000: 8.62%

With rates currently under 6.5% for a 30 year fixed rate mortgage, it looks like a great deal historically!

What will rates do next?  It's hard to say. But it's worth noting that the federal budget deficit and the increased price of oil will certainly continue to put pressure on rates to increase.

When's the perfect time to lock in the lowest interest rate? No one knows and if they tell you they know you ought to be suspicious! The truth is, interest rate movements frequently confound us all.

Now might be an excellent time to lock in!