The History of Interest Rates

Since I've been talking a lot about interest rates, I thought I'd show you this link which shows average monthly mortgage rates going back to 1971.

When I was first licensed in 1981 rates were 16% and quickly went UP from there to almost 18.5%. When they finally slid down to 14%, we were jumping around like we had won the lottery! (This is why I laugh when I hear competing agents complain about rates.)

By the way, I sold a lot of real estate back then despite the rates. We got creative with our marketing, and especially with financing. We used mortgage assumptions, wrap-arounds, buy-downs, land contracts, second mortgages, etc. AND we stayed positive and had fun. Even though everyone thought I was nuts for starting a career in the "worst real estate market since the depression" it was the perfect time to start because I learned valuable lessons every day and sometimes every hour of the day.

The important lesson I learned about rates is none of us have control over them AT ALL. (Except for, perhaps, Ben Bernanke.) But real estate always sells, if you do things right. And those "right things" differ according to the economy, interest rates and the market cycle you're in. You just have to find those things and do them. And then keep watching for the changes because the only constant is change!

One of the great things about this history of rates is the perspective it provides. It doesn't bother one so much to see rates move up a half point if you know rates have been 10 points higher once upon a time!

Chuck

Chuck Karpfinger
RE/MAX Realty 100
414-453-8223
mail to: CharlesK@execpc.com
http://www.chuckkarpfinger.com/
Twenty-five years of taking great care of hundreds of clients.


Wisconsin Licensed Real Estate Broker