The real stuff: 5 reasons it’s smarter to buy than rent #2
5 reasons it’s smarter to buy than rent #2
The lowest interest rates since the 1950s: A major reason that buyers should purchase now is that interest rates are close to all-time lows, and can’t go anywhere but up. In 1978, interest rates were 9.75 percent and soon hit 10 percent. In the downturn in the 1980s, they jumped as high as 21 percent. In the early 1990s, they were at 12 percent. If you are waiting because you think rates may drop more, this is a poor idea. With the government running huge deficits, it will have to sell Treasury bills to cover the debt. Investors are feeling skittish about purchasing these securities. This means the government will have to increase the rate of return in order to get more investors to purchase. When the government increases these rates, the cost of home mortgages will increase along with them.
\nBy: on April 9th, 2012 Category: Uncategorized