Not a Mirage!

This is NOT a mirage! It is a genuine article from the Times! While it's true that it is from 1982, it's a very real reminder of where rates have been and how great they are today! Over the years, this particular article has come in very handy when I've had clients wrestling with decisions dealing with a difference of 5.25% versus 5.375%.  How a 1/8 % difference could possibly matter would be punctuated with a reminder of the  old 18%  rates.

Note that if the rates had "slid" to 17.54%, they were substantially higher just prior to the slide. We all remember (at least those of us who have toiled in this industry for a while), a "stampede" to refinance when the rates dropped to 13.5%. It seemed to us at that time that a natural place for the mortgage rates to be was between 8.5% and 10%. Those heretofore "normal" parameters were twice the rate that can be obtained today. Currently, an applicant for a mortgage with sound credit and a 20% down payment can expect a mortgage in the upper 4's or low 5's percent! One has to wonder if we will ever see these rates again. Add to the equation the fact that prices of properties have dropped dramatically and we find a buying opportunity not seen for a very long time.

                               While it's true that the banks have become more careful in lending and underwriting criteria have become tighter, the loans do get committed and most which are committed do, ultimately close. 

                               Sure, we have to sweat a bit more, but the deals are out there.