Higher mortgage rates have you down?

Higher interest rates have you down??Why in the world would anyone buy a house when rates are over 7%??Ask someone over 55 ??!?After you hear them lament about interest rates of 12% (or higher) on a mortgage, further discussion will probably lead you to conclude that it was a wise decision for one of the following reasons:

?Asset Appreciation: Historically, real estate remains a tangible asset that appreciates over time. Even during high interest rate cycles, the value of a house typically grows. In the long run, this appreciation can offset the initial higher interest costs.

Negotiation Leverage: In a high interest rate environment, there's generally a decrease in buyer competition. This can put potential buyers in a stronger negotiating position, allowing them to secure properties at more favorable terms or even below market value.

Long-term Perspective: If you're planning to live in the house for a considerable duration, the initial high interest rate may become less relevant as rates fluctuate over time. Additionally, there's always the potential to refinance when rates drop.

Building Equity: Rather than paying rent and not accumulating any ownership, paying off a mortgage, even at a higher interest rate, allows homeowners to build equity. Over time, this equity can be leveraged for other financial opportunities.

Rental Income Potential: If you buy property in a desirable location, you could rent it out. Rental incomes often rise during high interest rate periods, as fewer people can afford to buy homes. This provides an opportunity for property owners to earn substantial rental income.

If you remove the well-known housing mortgage crisis that began in 2007-2008, that was caused by over-production of housing units fueled by rampant speculation and lax lending standards, the data on home appreciation are stable and look to be for the foreseeable future.

Question about your next mortgage??Ask the Hat Guy. I've got your next mortgage on your mind.