Why Today’s Mortgage Rates Are Not High

Good morning and welcome to Houston First Time Home Buyers Edition, where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining your first home.

Today we are talking just a bit about interest rate. There seem to be an ongoing set of mis-information relating to interest rates being too high and the need to wait for it to drop before buying a home. Headlines are constantly screaming how high mortgage rates are and why people should wait to buying their home. Those writing and printing those headlines, are no doubt, already home owners that may or may not be paying the same interest rates they are now screaming are too high. Here is a history of mortgage rates going all the way back to 1971.

Image: Propertycalcs Historical Mortgage Rates

As you can see from above, today’s rates are not “high.” They are perfectly within range. Here are few things that may happen while you are “waiting” to purchase your first home.

• You miss out on building equity.

• Realizing you cannot time the market.

• Home price increase.

• Realizing that you can always refinance.

While there are some very solid reasons to wait to purchase your first home that include working to increase your credit scores, waiting on a raise, promotion or switching to a higher paying job, or you simply not feeling ready, waiting for interest rate to fall is never a good idea because when rates are low, home prices are typically high.

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana