You think interest rates are high?

The real estate market has been viewed of late through a lens that is about five years old. “Conventional wisdom” may say that low rates have driven the market, but when one looks at interest rates over the past thirty years, they don’t look so bad. To those who complain about 7% rates, please gain some perspective. There was a time when houses were not bought and sold every few months.

30 Year interest rates

The commoditization of the real estate market looks to be on its last legs. Low rates and the perception/reality of those low rates have driven the market over the past few years. Now that inventory has caught up with the market, true equilibrium may be reached.

Graph courtesy of Jay at buygilberthomes. Data courtesy of FreddieMac. I actually downloaded this data weeks ago, but am not the graphical wizard that Jay is. :)

Technorati Tags: ,

If you're new here, you may want to subscribe to my RSS feed or sign up for Email Alerts. This blog tracks the real estate market in the Charlottesville, Virginia region, local politics, technology and other matters impacting the local real estate market. Thanks for visiting!

September 13, 2006 | Filed Under General Real Estate, Market statistics 

Comments

One Response to “You think interest rates are high?”

  1. Interest rates in the Charlottesville area : Real Central VA on June 17th, 2007 1:45 pm

    [...] the average interest rate for a 30-year fixed rate mortgage jumping to 6.74%, I asked Carl Heimlich with C&F Mortgage to pen a quick note on what is happening in the [...]