Holy cow! Freddie Mac announced yesterday that the average 30 year fixed mortgage rate hit a record breaking 4.58% this week, shattering the previous record (just last week) of 4.67%. This is the lowest rate on record since Freddie started keeping track of such things in 1971! The only time money was cheaper was in the 1950’s when long term home loans were only 20 – 25 years. This got me thinking what did in cost to buy a house in the ‘50’s? Googling 1950’s home price came up with varying answers from $2,390 to a whopping $14,500! My guess is then, as it is now; it was a matter of location, quality and size that determined the price. People use to always say location, location, location which I feel is still important but more in the sense of avoiding bad locations as much as possible.
Homeowners who are discouraged with the depreciation in their homes values we are currently experiencing need only look back a decade to see that even with setbacks real estate always ends up appreciating in the end. In declining markets we need to keep in mind these are our homes not just investment vehicles. With utmost sincerity it is my best bet that 10 years from now people will be kicking themselves and saying if I had only bought property in 2010 when screamin’ hot deals where there for the taking and interest rates dropped through the bottom.