How Low Can You Go?
Mortgage rates are down - again! Current 30 year fixed rates are hovering in the mid 4%. That got me thinking about what other prices were the last time mortgages were this low. . .
Today's rates are lower than those in 1971 - the oldest data I could find on the Internet. In 1971, however, a gallon of gas was $0.27 and a loaf of white bread was less than $0.50. And you would have paid only $0.046 per kilowatt of electricity (compared to $0.132 as of 9/2010). (Source: http://data.bls.gov:8080/PDQ/outside.jsp?survey=ap)
Unfortunately, mortgage rates this low are a by-product of a sick economy and must go up as the economy recovers. So if you know of anyone thinking about - Now's the Time! And although it's less intuitive, it's a great time to sell, too, when lower interest rates help the largest number of people afford to pay your purchase price, too!
10.30.10