How Will Higher Interest Rates Affect the Housing Industry?Posted by Judy Orr on
Interest rates keep going up on a day to day basis. As I'm writing this, rates are above 4%. We haven't seen that figure in a while!
So before anyone panics, I'd like to go down memory lane to when I purchased my first house. We were given a 10 year mortgage at 10.5% interest with a 20% down payment (the 3 bedroom, 1 bath single level home on a crawl in in a Chicago suburb called Evergreen Park cost $18,000). We made it into a cute little dollhouse. We didn't balk at 10.5% interest - those were the going rates. But look at that low price! In only about 3 years we sold it for $47,500 - those were the days.
I remember when the market went wild when rates fell to 8.5%. It was definitely a seller's market at that time. It was difficult for…
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