Why Today’s Mortgage Rates Are Not High

Good morning and welcome to Houston First Time Home Buyers Edition. Today we are talking just a bit about interest rate. With an insatiable desire for clicks and views, headlines are constantly screaming how high mortgage rates are and why people should wait to buy their home. Those writing and printing those headlines, are no doubt, already home owners, dispensing unsolicited advice. Listen to them, and you will keep renting, while their home increase in equity. 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 reason because when rates are low, home prices are typically high. Plus, you can always refinance.

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