I believe it could happen. Being in the mortgage financing business since the 1970′s, like many of us….it is very difficult to digest the current low low interest rates without some speculation and anticipation that soon the rates will rise and the market will shift. We have lived through 18% first mortgages rates and in 1989 to 1992, watched our home prices decline by 25% to 50%.
Now in the 21st century, the current real estate prices are unbelievable. Wow! Do you remember back in 1974 when a bungalow in Scarborough would sell for $30,000?
Today, the very same house is selling for $400,000 to $500,000!
The current rise in the Real Estate Market is driven by these low interest rates, which strongly contribute to the rise of property values. Most people are concerned mostly how much it will cost to service their debt. Whether it be Residential or Commercial, “What are my monthly costs? “ remains the common question.
Could the lenders reduce their rates to 1% and still survive? I am positive they can and may eventually do exactly that to get your business. We may see 1% rates in the near future….who can say? It all comes down to the Lenders competing for your business. The Economy, Employment Figures, Manufacturing, Production and many other factors also come into play.
My suggestion in this current market is this: TAKE ADVANTAGE OF THESE LOW LOW RATES…When the Bankers want your business, give them your business! You never know when their lending attitudes and policies will change. Here is my best tip: ‘ When looking for financing, be it buying or refinancing, request as much as possible for as long as possible, with the lowest possible rate ‘.
DO NOT WAIT TO BUY REAL ESTATE
BUY REAL ESTATE… AND WAIT!
