History of Interest Rates and Rates in Today’s Market
In my last blog I shared with you how today’s market is effecting our sellers, I finished by telling you I would talk about sales in our area. So here goes.
In our Charleston MLS in the Year 2007 there were 12,382 sales units closed, yes it was down from the previous years, 22% however, those of us who have been in the business a while know there is always a bell curve in the business.
We can look at the history of our market, in the late 70’s to early 80’s interest rates fluctuated from 15 – 18% we never thought we would see a single digit interest rate again (right now our interest rates are the best they’ve been in years) During the early 80’s those of us in the business gained a great deal of knowledge on how to creatively adjust to the market, this was when adjustable rates were first introduced, blended rates became popular, some seller’s held mortgages so they could move on. Many Employers paid the difference in interest rate. They would usually contract this for approximately three years knowing from history it usually takes two to three years for the market to balance and change. I’m certainly not a statistician, I do know however when we adapt to the market, look creatively on how we can learn from the experience, we can find opportunities in the market today.
With the interest ranging from 5.75%-6.75% fixed rates, now is certainly a good time to buy. No one at this time can predict what will happen with interest rates. Since the 1980’s each year we have seen a steady decline. The lowest interest rates were in the years 2003, 2004, 2005 ranging from 5.37% to 5.98%. They have stayed pretty consistent since that time ranging from 5.75% – 6.75% as stated above.
Broker in Charge
Prudential Folly Road Office
843-795-7810
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