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  • Writer's pictureSarah Bowden

What goes up must come down!


Interest Rates are on the rise, there is no question about that…. BUT: Renting is always 100% interest! Investing in Real Estate is still worthwhile. After checking in with Ryan Schleis – the expert on all things data-related – he noted that one of the best sources for economic data is “FRED” from the St. Louis Fed. They have charts for almost every economic indicator you can think of, and specifically have a chart on the 30-year fixed mortgage rate average. Please see here:https://fred.stlouisfed.org/series/MORTGAGE30US. If we look at the history of interest rates over the past 20-30 years we get some perspective and, as buyers, we realize that 6% isn't that ominous or unusual. As you can see, it shows that ~6% mortgage rates were last seen in 2008 but were pretty consistently at that number from 2003-2008 (a very strong time for the housing market!). At the end of the day, the focus should be on a payment you can manage, not the interest rate that you are receiving. Remembering that renting is always 100% interest, and not building your own financial equity. When you buy - one part of your monthly mortgage payment goes towards paying off the mortgage (building equity) and one part towards the Interest portion ( cost ). Whereas when you rent – 100% goes towards the cost (Zero Equity). Please feel free to circulate this information with friends or family that have questions about the housing market right now. I hope you'll all find this valuable information!

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