If you have a better
product or service,
why whisper it?
Retail is not
a four-letter word.
© 2018 Mark Zintel, Inc.
A Few Words on
Home Mortgage Rates
By Mark F. Zintel March, 2018
©2018 Mark Zintel, Inc.
Home mortgage rates are edging up and this
is great news for two reasons. First, it means
our economy is genuinely moving ahead
(regardless of which “team” you’re on) and
secondly, it will actually help temper a
runaway housing market like we saw last
decade. Younger homebuyers who have only known insanely low, post-recession interest rates are feeling anxious
about current “high” rates in the four percentile.
Imagine your first home’s “low” rate of 9% in 1976 and a subsequent rate of 13.6% on your next home in 1980,
during America’s Great Malaise. Not long after, rates were as high as 16%! In the late 1970’s recession, rates went
up instead of down. Any first time buyer who thinks 4.7% is “an issue,” should pull up a long-term historical chart
on mortgage rates. Indeed, these are still great times for mortgage rates. While the recent rate increases are
resulting in a slowdown for refinancing (see attached article from CNBC), there is a 3% increase from this time last
year for new mortgage applications. And we are seeing buyers financing a smaller percentage of their homes and
buying more sensible homes within their reach -- instead of overreaching like last decade’s “irrational
exuberance,” over speculation and 125% loan to value notes.
Sorry to say it folks, but your biggest enemy is the hoard of newbie home-flippers, spurred on by not-so-real reality
TV shows, who are driving up resale prices on fixer-uppers. But for a savvy homebuyer who will be an owner
occupant and who is not concerned with a 10-15% annual ROI, there are still good buys out there if you’re willing