Time flies by so quickly and we rarely get a chance to stop and think about how many things have changed in the past few years.
Consider these contrasts with 1990:
- A loaf of bread cost 67c. Now it's $2.22.
- Gas was less than half of today's price back then.
Sobering statistics, but some things really stack up well against what was the norm almost a quarter of a century ago.
Mortgage interest rates are a case in point. Right now they are less than half of what they were in 1990, even though home prices have risen considerably since then. That means more of your dollar goes toward your equity.
It would therefore be true to say that there has rarely, if ever, been a better time to invest in a home of your own.
So far in 2014, mortgage interest rates have stayed near to historic lows, despite the predictions of financial experts that they would rise steadily, following the Federal Reserve's progressive departure from housing market support.
These support measures focused on keeping rates as low as possible and were instrumental in stimulating recovery after the Great Recession. Last Fall, the Fed felt confident enough to begin withdrawing support and, as a result, almost every financial commentator predicted quite steep rate rises as the market corrected itself.
In practice, however, this just hasn't happened. 2014 has seen a continual rise in international tensions of one kind and another, which has reduced investor confidence and promoted interested in less risky investments such mortgage backed securities (MBS). This has counterbalanced the Fed's reduced buying of MBS this year and there has been a consequent neutralization of the anticipated effects of this retreat.
All this being said, and as always with financial markets, situations are volatile and can change very fast. We therefore strongly advise you to contact us today and explore your options while the situation is so favorable. We can provide a complete turnkey service, including introducing you to the very best mortgage professionals in the Albuquerque area.