Mortgage rates are a critical factor when purchasing a home. Since our founding in 1965, Fazendin Realtors has experienced various mortgage markets – rates ranging from about 3% to 18%. While sales didn’t come to a stop at the highest rates, there was a drastic slowdown in sales activity.
It’s essential to understand the importance of home ownership both as a cultural and economic driver in the United States. Our cities, states, and nation need new homes to be built and people to be moving. This movement creates massive demand for goods and services associated with home ownership.
Starting in 1979, mortgage rates began to climb until they reached about 18%. The origination and sales of mortgage products make home financing a very big industry within the financial market. As such, it was critical not just for people seeking home ownership but for the financial well-being of this country that the mortgage rate problem be figured out.
It took a while, but in early 1982, adjustable-rate products began to appear that were acceptable to the buying public. During that period, contracts for deed also provided a crucial avenue for buyers and sellers.
The takeaway is that there are usually ways to work with interest rates to achieve home purchases. Multiple mortgage products are available, but competent guidance is critical in making these decisions. The vocabulary and terminology used are often confusing. The right choices of a real estate agent and mortgage lender are important.
Fazendin Realtors takes great pride in the training and competence of our agents in assisting both home buyers and sellers. •