Many buyers are surprised when they hear mortgage rates are in the mid-6% range today. While rates are higher than the historic lows we saw during 2020 and 2021, it's important to remember that those years were the exception—not the norm.

In the 1970s, mortgage rates generally ranged between 7% and 10%. By the early 1980s, rates climbed dramatically as inflation surged, peaking above 18% in 1981. Imagine financing a home with an 18% mortgage rate!

Throughout the 1990s and early 2000s, rates gradually declined and typically ranged between 6% and 8%. Following the Great Recession, rates moved lower, often settling between 3.5% and 5% for much of the 2010s.

Then came the pandemic. To stimulate the economy, interest rates fell to historic lows, with many buyers securing mortgages below 3%. While those rates created incredible affordability, they were never expected to last forever.

Today, mortgage rates are closer to their long-term historical averages. In fact, many homeowners purchased homes successfully when rates were much higher than they are now. The good news is that buyers can often refinance if rates decrease in the future, but they cannot go back and buy today's home at today's price if values continue to rise.

The bottom line: while interest rates matter, they are only one piece of the homeownership puzzle. Waiting for the "perfect" rate may mean missing opportunities in the market. A conversation with a trusted lender can help you understand your options and determine what makes sense for your financial goals.

If you're curious about how today's rates impact your buying power, I'd be happy to connect you with a lender and run the numbers with you.