It's NOT That High!

Written by Posted On Wednesday, 18 May 2022 00:00

People are really complaining about mortgage rates. I understand that nobody likes when things get more expensive, but the truth of the matter is, rates are NOT that high! Yes, they are higher than they have been recently, and yes, you do have to go back to 2009 to find average mortgage rates in the 5% range and 2008 when they were last averaging in the 6% area. To be fair, it was only 21 years ago when rates averaged in the 8% range, and you have to go back to 1991 to find 9% and 1990 to see double digits, but before that it was double digits from 1979 for 11 years! Including 1981 & 1982 when rates were 16+%!

So yes, mortgage rates are higher than they were recently, but take a look at the rates on your credit cards! How many people are carrying balances on credit cards that are 15% - 18% - 20+%? What about the cost of gasoline, food, and just about everything else? Have you seen RENTS?

Yes, rates are higher, but we are still seeing many refinances. While significantly lower than the number from last year, it still amazes me that there are as many as there are. Here is what I am seeing.

  1. While rates are higher than they were, it still can make sense to refinance and payoff debt to lower total monthly payments.
  2. Higher rates but a large amount of home equity can make home renovations easier to manage than selling and moving.
  3. Increased numbers of 5/1 – 7/1 – 10/1 ARMS help reduce payment shock while the markets find the new normal.
  4. Some lenders are offering to refinance the loan for free in the future if rates fall back down.
  5. Once again, it can be about VALUE of the total payment being lower, not just the interest rate on one loan.

You must share real information. Go print out a chart so you can share it with your people. You have to make complete comparisons. When you do, you will see, It’s NOT that high! 

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Year

Average 30-Year Rate

Year

Average 30-Year Rate

Year

Average 30-Year Rate

1974

9.19%

1990

10.13%

2006

6.41%

1975

9.05%

1991

9.25%

2007

6.34%

1976

8.87%

1992

8.39%

2008

6.03%

1977

8.85%

1993

7.31%

2009

5.04%

1978

9.64%

1994

8.38%

2010

4.69%

1979

11.20%

1995

7.93%

2011

4.45%

1980

13.74%

1996

7.81%

2012

3.66%

1981

16.63%

1997

7.60%

2013

3.98%

1982

16.04%

1998

6.94%

2014

4.17%

1983

13.24%

1999

7.44%

2015

3.85%

1984

13.88%

2000

8.05%

2016

3.65%

1985

12.43%

2001

6.97%

2017

3.99%

1986

10.19%

2002

6.54%

2018

4.54%

1987

10.21%

2003

5.83%

2019

3.94%

1988

10.34%

2004

5.84%

2020

3.10%

1989

10.32%

2005

5.87%

2021

2.96%

Source: Freddie Mac

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Michael White

After 18 years working in all phases of mortgage originations, Mike left day to day originations to start his consulting and coaching company. Now, more than 18+ years later, Mike is working with clients across the country in all markets, big and small, that have generated more than three billion dollars in loan originations within a year.

Mike teaches a system that is focused on time management, action planning, marketing a message, and creating value for both clients and referral sources alike. Quite simply, providing more value leads to more opportunities, more income, less time, and a systematic approach that begs to be duplicated.

 

By breaking down individual aspects of the mortgage business and providing a step by step approach to creating a consistent flow of opportunities that can lead to a highly successful mortgage practice. That is why people who incorporate these strategies out produce the national averages by almost 3 to 1!

Fundamentals and simple strategies provide day to day activities that help provide a “scheduled success” philosophy. It’s all about identifying, targeting, and establishing profitable referral relationships using exceptional value to keep you in the center of your own referral triangle. 

 

https://www.imtcoaching.com/

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