Writing about mortage rates being historically low could seem incredibly boring after so long.
Yes, rates are low and have been for many years.
I’ve enjoyed feigning boredom in these posts.
But these rates are incredibly exciting.
How many people are taking advantage of lowering their monthly payments?
I guess on some level I’m like the Gecko on TV, excited about helping people, indirectly, in saving on their monthly costs.
I vastly prefer advising buyers and sellers on property rather than the financing side, but they go hand in hand.
So, thinking about retiring the monthly mortgage posts is not going to happen, not when many people don’t even pay attention to them.
They are again at historic lows.
I’ll be happy to see this continue for a little while longer, to get past more of the pain nationally with underwater mortgages etc, and to see more price appreciation at the low end – studios and one-bedrooms specifically.
In my view, rates do not seem to be the driver for international buyers, especially given the unfavorable exchange rates currently.
But mortgage rates are the big domestic push for purchasing, especially here.
I’m not going to make this the marquee piece this month, but let’s focus quickly on renters looking to buy.
Renters are paying historically high numbers at the moment.
This, coupled with low rates, makes for an intriguing decision for a would-be buyer.
2009, when rents and the market were both down, seems so long ago.
Now, rents are high, and pricing is still a bit down from its peak- Is it cheaper to buy than rent a one-bedroom?
Short answer, yes.
Until this equation changes, or the economy starts to push up, the rates will be a huge help, especially getting smaller units back to par.