Just received this telling (and colorful) chart from one of my colleagues in the lending arena. The chart show average interest rates on 30-year fixed Freddie Mac mortgages over the past thirty years.
We constantly hear about “historical lows” with regards to interest rates in the media. This chart lends some nice perspective.
Click on the chart to enlarge.
Thank you to Cheryl Dresen, a Sr. Loan Officer at PrimeLending, for providing this chart and her continued support of the Reno Realty Blog.
Cheryl Dresen
Don’t miss out on a huge investment that only comes around once in 30 years.
From the first time home buyer, to the move up buyer and finally the investor.
Don’t wait to purchase, this may be the last year that you see interest rates and home prices this low. Banks are approving loans and we are closing within 30 days or less.
The process is not that hard and I will guide you through it. Give me a call to get pre-approved now. Once approved, you will work with Guy to find your dream home.
Cheryl
E.Edward
Where have I heard those wise words of advise before…………Hmmmmmm?
Oh’ that’s right:
2004
2005
2006
2007
2008
2009
2010
2011
2012
……and now everybody’s upside-down in there mortgage!
Thanks for the advise!
MikeZ
E. Edward, in “Nationally, no turnaround in home prices anticipated in 2012” you argue that low intrerst rates can’t last, but now you’re essentially arguing the other side.
Can these historically low rates last, or not?
Raymond
The reason mortgage rates are as low as they are is because major institutional money is still pouring into long bonds. Demand raises the price of the bond, which lowers the yield. And why would all this money be satisfied to accept 1.95% on a 10 year Treasury? Because this money is not yet convinced that the economy is really on the mend. Taking 1.95% on your money is what you do when you have no confidence in anything else. So how long will these rates last? They will last until institutional money thinks there is a better place to safely invest at a higher return. When will that happen? Who knows.
I’ll let some the real geniuses that appear on this blog answer that one.
downtownjunkie
Don’t kid yourself about institutional money. It’s public money (debt) driving rates down. It won’t stop until Ben says so.
“Don’t miss out on a huge investment that only comes around once in 30 years.
From the first time home buyer, to the move up buyer and finally the investor.
Don’t wait to purchase, this may be the last year that you see interest rates and home prices this low. Banks are approving loans and we are closing within 30 days or less.
The process is not that hard and I will guide you through it. Give me a call to get pre-approved now. Once approved, you will work with Guy to find your dream home.
Cheryl”
…. is this a joke?
E.Edward
Mike what are you asking me?…..obviously of course my comment isn’t directed at the article its directed at the typical realtor ranting/mindless/baseless first post…… and by the way…..Personally I for one like these articles, informative and seemingly fair. I’m grateful somebody takes the time to do it, as I’m sure the blogs potential sales exposure overwhelmly outweighs the unsightly bearish comments for the author.
to try to answer your question….. absolutely these rates Cannot Stay low, Who in there right mind would think different?
Carney
It’s likely not intended to be a joke, although it is comical.
Guy probably did not charge Cheryl for the free advertisement.
Up next, perhaps, is a little spot from a colleague in a local title company, eh, Guy?
Walter
I’m sure Cheryl can use any help she can get. With half of all sales being for less than $135K, the average loan amount ain’t what it used to be. And, as Guy assures us, many, many, buyers today are engaging in bidding wars, cash-laden, who don’t even need a loan. And then, there are how many hundreds of loan officers in Reno chasing after what business there is?
E.Edward
OK, I can see the next debate coming so let me head this one off.
Just because home stereos and televisions {sarcasm}are the only thing counted in the joke CPI numbers means inflation is right on target…… right?
Wrong….. when myself and 300 million other people are unfortunately in the real world of inflation watching fuel, energy, food, cost of living and just about everything else you can think of go up in price eventually the fed will run out of excuses and will have to acknowledge real inflation, most likely after elections
……and on that day bonds aren’t gonna look so good and rates are going up!
Sully
Here is an interesting article (.pdf form) by Tom Barrack who is probably the modern day version of Trammel Crow. Study the cycle at beginning before reading.
http://www.colonyinc.com/pdfs/060811chairmancorner.pdf
Matthew
Rates drop as the government continues to manipulate credit markets and encourage the citizens to take on debt.
Rates are low because the federal government wants banks to offload their mortgages to the taxpayer. Now we have a near-zero discount rate… so I can’t fathom rates dropping too much more. It’s a sleight-of-hand though, the problem isn’t that people can’t pay the rates, it’s that people don’t have any cash to invest.
Now the low rates are the Fed trying to court wealthy investors back into the market… I sense a bit of hesitation though given that they are being demonized and the long-term tax status of capital investment is unclear.
Cash is King – more than ever | RRB Home
[…] RRB Home Skip to content HomeSearch for PropertiesNew Listings NotificationNeighborhoodsCentral and Southwest RenoNew Northwest RenoOld Northwest RenoSouth Suburban RenoSoutheast RenoSpanish SpringsSparksWest RenoLocal MarketLocal School InformationLocal BuyersBuyers RelocationSellersInvestor BuyersFinancingMortgage CalculatorsAffordability CalculatorMonthly Payment CalculatorContact Guy – (775) 722-4011About Guy JohnsonGuy’s TestimonialsContact GuyPrivacy PolicyLegal Disclaimer ← How low can they go? …Interest rates that is […]