Sometimes we hear people say something like “Four and a quarter percent? Wow, is that ever HIGH!” which causes us to involuntarily raise an eyebrow or scratch our heads.
The challenge we have in the mortgage business is sometimes about managing expectations. You see, when interest rates were bumping along at 5.5%, a drop to 4.99% was considered really good!
Fast forward a couple of years, and now that rates have been under four percent for awhile, the fact that they had recently gone up to the low to mid fours really upset some people who were quick to complain about how high rates were.
Clearly, they were higher than they had been…but historically speaking, they were still ridiculously low.
Our friends at Street Capital have done a little research, and this graph, which they supplied, is a good reminder of how high rates have actually been at times. Keep these in mind when you’re planning your next mortgage, and please, if you have a chance to take advantage of rates while they’re still REALLY low, you should do it.