Interest rates are the lowest that they have ever been in 100 years.
In today's market, you can get a 30-year fixed jumbo loan from lenders like Citibank with an interest rate around 3%-4%. That's on par with the low interest rates for adjustable rate mortgages (ARMs) during the subprime bubble when lenders relaxed their underwriting standards (to say the least). Today, lenders actually are underwriting the loans and requiring higher down payments (i.e. 20% unless you use an FHA loan program with a 3.5% down payment or a VA loan program). What surprises many of my peers is that during the 1980s, it was not uncommon for people with good credit to put 20% down and have an interest rate of 20% on their 30-year loan.
I know that a picture is worth one thousand words. Check out this chart that shows how mortgage interest rates have changed over the past 100 years. It's fascinating when we contextualize what is happening today
For more information about how interest rates how fluctuated since 1910 and an interesting discussion about how real estate functions as an inflation-resistant asset, please see the link below:
http://www.dailywealth.com/1615/The-Best-Time-in-History-to-Buy-a-House
The moral of the story is: "Interest rates will eventually go up. Inflation is coming. So get ready for it by taking advantage of this particular moment in history."
As aboriginal time home buyers there are abounding challenges out there alignment from condoning beneath the stricter accepted guidelines, to allotment the appropriate breadth to buy, to compassionate the accomplished action of home ownership?
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