Considering the perspective on mortgage rates, it’s illuminating to reflect on the historical context. In 1971, mortgage rates stood at 7.33%. If one had chosen to postpone their home purchase until rates decreased, they would have endured a lengthy wait until 1993. During this prolonged renting period of 22 years, the real estate landscape evolved significantly. The house’s potential value that could have been owned during that time not only appreciated but quadrupled. This stark contrast underscores the dynamic nature of the housing market and the potential opportunity cost associated with waiting for ideal mortgage rates.
Certainly, mortgage rates have seen an increase over the past two years, prompting many prospective homebuyers to adopt a wait-and-see approach, anticipating a decline in rates.
However, considering the broader perspective on mortgage rates provides valuable insights. Casting our gaze back to 1971, when rates were at 7.33%, similar to today’s rates, offers a historical context. Had someone opted to delay their home purchase until rates dropped, they would have found themselves waiting until 1993.
According to the U.S. Bureau of Labor Statistics, prices for housing are 738.85% higher in 2023 than in 1971
This 22-year delay, spent in rental accommodations, unfolded against a backdrop of substantial evolution in the real estate market. This historical comparison underscores the dynamic nature of the housing market and highlights the potential opportunity cost associated with holding out for the perfect moment of ideal mortgage rates.
To wait, buy or sell now—that’s the question. Let’s discuss your unique situation. Give me a call, and together, we can make the best decision for you. With 46 years of experience backing my expertise, you can trust in my knowledge and commitment to delivering exceptional service.
Tom Slupske | Realtor | RE/MAX Results
763-235-7090 | tom.slupske@results.net