Changes, everything changes. For the past gazillion years it seemed that interest rates just kept getting lower and lower. A 30yr fixed below 6.00%; never!
Below 5.00%; amazing! Under 4.00%; unheard of!! 3.5%; that is almost free money.
Now, a 30yr fixed is back up to a whopping 4.5% and you would think the sky is falling. Perspective matters in all things. This is still cheap money and this recent rise in rates should never be an obstacle for anyone looking to purchase. Now I am not advocating running out and purchase property so I benefit. No, but if you are looking and are serious, then the current interest rates should not be an obstacle in the decision making process.
Remember, it all depends on perspective. In 2007 the unemployment numbers were over 6.00% for the first time in decades. Based on the media reaction to this news the sky was falling. Today unemployment is at a reported 7.3% and the percentage of workers not participating in the job market is the highest it has been since 1978. Not good news at all. Yet, according to the media we are in the third year of recovery.
So what does this mean? Never ever listen to the mainstream media, they never seem to get things right. Rates are still historically low. Do your homework when buying a home. It is back to being a buyers’ market so take advantage of all this.