When my mother bought her house years ago, her interest rate was above 12%! Several years later, she refinanced to help fund us through college. And when her broker got her down to 6%, mom was so happy, she sent the lender a huge fruit basket to thank them for their help.
If we’re just looking at interest rate alone, the current rates are still historical lows. However, the housing market is not defined by interest rate alone. Prices have risen significantly and capitalization rates have compressed significantly.
The real question you want to be asking is: does the ROI of a real estate investment fluctuate alongside interest rate (or the cost of capital?).
