WEEKLY MARKET UPDATE FEBRUARY 22th, 2025
Hey there, let’s hop into our time machine for a quick trip back in time! Imagine we’re in the 1980s. Big hair, funky music, and... really high mortgage rates.
Picture this: It’s 1985, and someone wants to buy a house. But instead of today’s rates, they’re looking at a 12.43% interest rate. Yikes! And just a few years before that, in 1982? A jaw-dropping 16.06%! That means borrowing money to buy a house was super expensive.
Why? Well, a guy named Paul Volcker, who was in charge of the Federal Reserve, had to fight off a big, bad monster called inflation. He cranked interest rates up to 20%—crazy, right? But over time, things calmed down, and rates started to drop.
Now, back to today! We’ve seen rates go up again because of pandemic spending and supply chain issues, but guess what? The economy is shifting, and experts believe we’re heading toward more balance.
What Does This Mean for You?
?? Buying a home might soon get easier. If rates come down, that dream home could be more affordable!
?? Challenges still exist, but don’t worry. Inflation is still hanging around, but smart planning can help you navigate it.
The best part? Real estate is a long game, and those who plan ahead always win in the end.