We're considering buying a home, but I sincerely believe prices have
at least 15% more to drop in our area before they level out. On the other hand, if mortgage rates go up, that will make money more expensive to borrow 1-3 years from now after prices drop.
People keep saying rates are historically low right now, but I did some digging on the house we're looking at and saw it had a 5% loan in 1957. So I did a little more digging and found this chart that shows that prior to 1965 or so, rates were typically under 6%.
InnoVest's Foreclosure Forum
Soooooo.....I'm wondering. Why were rates so low during the depression? Why were they so low in the 50's?
Just trying to make an educated guess on where rates might be headed in 3-5 years.
Any scenarios based on known facts/history are welcome. (I know this is a big crystal ball gaze.)