I bet if you told people 30 years ago that mortgage interest rates would someday drop below 3%, they would not believe you. Furthermore, I bet that most of those people would tell you, if interest rates drop below 3%, I'll buy every house I can! Well, here we are, 30 years later and mortgage interest rates are below 3%!
The chart below shows the history of mortgage interest rates since 1970. As you can see, what goes down, always comes back up. Right now, rates are as low as they have ever been. There is no where to go but back up.
When I graduated from college in 2008 and entered the real estate industry, I remember people getting excited over rates dipping below 6%. It didn't mean much to me back then. That was before I realized the history of where rate had been and where they were about to go. That was a time when I could sleep until noon on the weekends without a care in the world! Graduating college and entering the real workforce was eye opening, to say the least! I was fortunate to have the opportunity to enter the family business and with that came the personal desire to see an already thriving company continue to grow. Thus, my awakening and realization of the housing market around me!
My Dad tells a story about when he and my Mom first got married and purchased a home on a 12.5% interest rate loan in the early 1980's. That was right after rates had skyrocketed to 21.5%! When given the opportunity to assume a VA interest rate at 12.5%, they thought they were in heaven! Their mortgage payment was $1,206 on a $90K loan. It was a basic, 1,800 square foot home with 8 foot popcorn ceilings, linoleum flooring and Formica countertops. To put that into perspective, that would be like at $3,400 payment today if you adjust their payment amount by the CPI. For $3,400 today we could build a luxury dream home three times the size with 20 foot ceilings, home theater, travertine flooring, granite countertops, outdoor kitchen and so much more! Pictured here is The Cypress Villa, the home they live in now. For what they paid back then they could live in the house they do today!
Now, here we are, 30 years later, looking at 30 year fixed rate mortgages around 3%. I even got an email for a 30 year adjustable rate starting at 2.35% and increasing to no more than 2.75%. WOW......to think about that makes me realize what a unique moment in history we are living in right now! Why would anyone want to do anything less than invest in as nice a home as they possibly can right now?
At 27, I have purchased 4 homes and recently upgraded to a home that will suite my lifestyle for many years to come. My last home was beautiful, don't get me wrong. It was less than 4 years old and had a stunning backyard oasis with a magnificent pool, 5 waterfalls and spa. My decision to move came from the fact that interest rates are unbelievably low right now and I knew that now is the time to upgrade to as nice a home as I could, because in a few years its not going to be nearly as affordable as it is today. In fact, I truly believe that in 10 years mortgage payments on the same price house will easily be 3 times as much . Plus, with continually rising construction costs total payments could easily be 6 times as much for the same quality house.
Ask yourself this, where do you see yourself in 10 more years? Does your current home meet the lifestyle needs you foresee having in 10 years? Will you want a larger home? Will you want a smaller but nicer home with less maintenance? These are the questions that I encourage EVERYONE I meet today to ask themselves. In 10 years I believe we will all look back and say... "WOW... that was such a great time to buy a house!", "I'm glad we did" OR "I wish we had"...... 
We have open houses in The Oaks everyday. Come out sometime and take a look or check our Home Listings Page on our website. There will never be a better time to invest in the American Dream!
