Housing Interest Rates Increases Explained In A New Loan Love Article

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LoanLove.com explains the recent drastic shifts in housing interest rates in a new article.

LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted article on LoanLove.com continues to help home loan borrowers to understand the real estate landscape by explaining the recent sharp increases in housing interest rates and what these rate increases mean over the long term.

The article first explains how it is easy to look back and see how past housing bubbles could have been predicted, but how often the signs are only obvious in retrospect. The article says: “It’s always easy to do a little Monday morning quarterbacking and say, “Wow. Anybody with a brain could have seen THAT was going to happen.” For example – looking back at the housing bubble and seeing how incredibly overpriced many homes were – not to mention the sizes of the mortgages a lot of lenders were writing – it’s easy to say now that the housing market was poised for a fall – a big one. But while some people got stuck with a lemon – like an inflated mortgage that left them owing more than their home was actually worth – other people watched as the economy began to spiral downward and waited for the adjustments and incentives that would surely follow. You can guess which group came out on top.”

The article explains that while it is easy to look back and see where the trouble started and how it could be avoided, most people do not actually see these things as they are upon them. Loan Love advises that learning to read the signs and signals of broader economic indicators can help borrowers and housing investors to make wiser financial decisions that could help them to avoid trouble in the near future. While looking at today’s interest rates may cause some to panic as they are much higher than they were earlier this year, it is important to note that rates can shift drastically depending on a wide area of different factors, so it is important to take a step back and look at what is causing the rates to rise or fall.

The article explains that bubbles are nothing new. Back in the 17th century there was even a tulip bubble where people where paying ridiculously high prices for flower bulbs, sometimes even as much as ten times the annual salary of a skilled craftsman for a single bulb. It is easy to see how this is foolishness, now, but getting caught up in the frenzy of investing in inflated assets is still a risk to this day. The article says:

“So what can we learn from all these bubbles? First, it’s true, history does repeat itself. And knowing that, we can be a little bit smarter when we shop for mortgages or other investments. So, the next time you see housing prices or mortgage rates (or tulip bulb prices) spiral upward or downward, take a breath before plunging in; while it’s easy to get sucked into the buying frenzy, it’s much wiser to look at the broader picture so you can, hopefully, spot the signs that can spell disaster – or opportunity.”

Today’s interest rates are nothing new- in reality, rates are still near rock bottom if you took an average of the past 15 years. If you haven’t guessed by now, they’re definitely going up. And going up fast. Act quickly if you’re looking to acquire or sell real estate, time is against you (at least in the short run).”

For more information on the current shift in housing interest rates, please visit LoanLove.com for the full article.

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Kevin Blue
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