Are we really at historically low interest rates?

Over the past 5 years we have seen rates drop as low a 2.8% (2.5% in high-rent districts, i.e. Long Island), that is almost a whole percent less than the 3.5% rates we saw in 2016. What this means for you as a buyer is, you have more buying power.

Let’s take a buyer looking at keeping their monthly mortgage payments to $3,000 per month. In Q2 of 2019, that would have bought them a $568,500 home. However, today they could purchase a $621,000 home. That means you have $52,500 more buying power with an interest rate difference of 1%!!

*Fun fact, interest rates went at high as 12.70% in the 1980’s. That frame of reference makes the projected 3.1% look like free money.

Moral of the story…take advantage of these low interest rates and begin to build equity via real estate.