A Little Perspective, A Lot of Opportunity

A buyer said to me the other day, "It's a shame that now that prices are finally down, interest rates have gone back up." This sent me scurrying for some historical data. The buyer was happy to be reminded that while, on a regional basis, many sellers are more willing than ever to negotiate, 30-year fixed rates are still relatively low, typically below 7%.

A quick snapshot of some historical interest rate climates:
In 1983, the 30-year fixed loan rate was 13.95 percent
In 1987, the rate was 11.36 percent
In 1992, rates dipped below double digits to 9 percent
In 1997, the rate was 8.27 percent
In 2002, the rate was 7.16 percent

As is so often the case, investors willing to go against the grain, to enter a market many are leaving, may be rewarded for their courage down the road.

Just some thoughts for those trying to make sense of a confusing market...