According to today’s headlines, the sky is falling. But, always know that negative headlines sell ads. Inflation is on the rise and isn’t changing as quickly as we would like. The Fed has raised their rates again, which led to mortgage rates rising, which led to a National slowdown in sales. Depending on where you look, the average for a 30-year fixed-rate mortgage is around 6-7%. Compared to a year ago — when the rate was below 3% — that increase seems massive and the average purchaser’s monthly payment has now more than doubled this calendar year alone. However, compared to historical averages — when the rate was pushing 8, 9, and even 10% — 6-7 % still seems relatively low. When we had our first farm loan interest rates moved up to 18% which was catastrophic.
The unprecedented time that we have just come out of with the mortgage rates being below 3% just isn’t reality. Rates may eventually go back down, but when we see mortgage rates on the rise, looking at the patterns historically can help us get perspective and not panic. We can look in this time for all the opportunities.
Americans have more equity in their home/property than ever before. Real estate is widely accepted as a smart and stable investment with a long track record of increasing in value over time. Place your trust in the investments length of track record, gains on that track record, and how broadly accepted it is.
Be weary of cryptocurrency, gold, silver, Beanie Babies etc… (- daveramsey) I have included a link that has a great explanation about what’s in the news regarding inflation, recession, and crypto-crashing and how all this relates to money and investments.
Let us help you navigate your considerations and the possibilities with investing in real estate by possibly using your equity that you already have or creating more! Find out what your property is worth in today’s market by using the link on our website.
Here’s to real estate opportunities!