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The Feds are raising interest rates to combat inflation. Now is not the time to borrow.
Here in Canada my wife and I got 2.19% at the end of 2021.
Unfortunately the 1100 square foot condo we bought cost us 550k.
Ooof
Frankly it was a steal compared to what some of the places we missed out on went for. One place we looked at was listed at 419, we offered 610, and it sold for 731. It was a ~1000 square foot bungalow with a half finished basement.
For the US, June 2023:
For a 30-year, fixed-rate mortgage, the average rate you'll pay is 7.06%
The average rate for a 15-year, fixed mortgage is 6.46%
Damn, what country are you in? I bought at the tail end of the 2008 crash. Things were still low but, coming back up. I think I'm at 4.5%
My friends parents bought in 2007 and keep making terrible financial decisions so they can't refinance. If I understood right their interest rate is 15% or something INSANE.
Romania. We are in the EU but not in the €urozone. We still use the local currency. For the same amount in € the rate is 6.40%. Total ripoff compared to the Northern/Western parts of the EU which is why I didn't sign shit. They can go fuck themselves.
Ohhh. Damn. Hope things get better
I'd rather leave the EU for places with better opportunities for making it big fast.
Poland here. Was quoted 2-3 months ago anywhere from 9.5% to 11.10%. Fixed rate for 5 years and then it would be updated to whatever the new rate will be.
I refused, gave up the purchase of a house till the prices will calm down (if ever), going to buy a boat to live aboard.
Looks like the lowest I can go is around 6%, which makes renting a better proposition for me.
In what location / currency ?
USA and dollars, the math doesn't work for buying right now... at least for me.
In Australia but we are just over 7% on our variable rate. Think 2 years ago it was down at like 3.something%.
Our reserve bank keeps upping the cash rate to "combat inflation" but all that is doing is making those of us with home loans give the banks more of our earnings while we already couldn't afford to splash out.
Germany. We got our loan in 2018 for 1.78%. A friend of mine even negotiated 1.4%. However, we have a loan term length (is that the word?) of 10 years, so let's hope rates will be low again in 2028.
Edit: It's a fixed interest rate over 10 years. Zinsbindung in German.
Loan term refers to the total life of the loan. A 10 year term would mean you could pay off the loan in 10 years through making minimum payments.
Are you referring to an adjustable rate mortgage (ARM)? That’s what’s they’re called in the USA. ARMs haven’t made a lot of sense in most cases as of late.
What does lending look like there? Do you all do 30 year mortgages too? Do you have an option for a fixed rate mortgage?
No, what I meant was a fixed interest rate over 10 years (German: Zinsbindung). The loan is over ~30 years.
After 10 years, we can decide if we change the lender or stay with them. The lender can decide on a new interest rate.
12 years ago house mortgage were 4% with good credit.