10/19/2026
Back in 1981, everybody wanted "Jessie's Girl." Acid washed jeans were in. Raiders of the Lost Ark debuted in theaters. And you could lock in a mortgage rate just under 17%.
Yep, you read that right. In 1981, the average mortgage rate was 16.63%.
If you're under 40, you've probably never seen a mortgage rate above 5% in your entire life until recently. But you see, for the last 15 years, rates have been held at a historically low level. In reality, your parents or grandparents probably remember this and most likely purchased their first home at a double digit rate as well.
Interest rates started rising in 2022 and, to be honest, probably won't be coming down to the historic lows we saw in 2020. But as we've seen in the past, people will continue to buy and sell homes even when interest rates rise. This just may mean adjusting their strategy.
So here is my best advice buying or selling here in Alexandria this year:
1. Make a move sooner rather than later. Whether you're buying or selling (or both) the time to act is now. Rates will continue to rise, but that doesn't mean prices will come down. We are in a historically low inventory market. Houses have been under built for the last 10 years, so there simply aren't enough homes on the market. So waiting will cost you.
2. Be realistic. If your budget is $400k, start looking in the $350k range so that you can make a competitive offer. Most houses are selling above asking and at list as a minimum. So give yourself a competitive advantage and start looking at homes below the high end of your price point.
3. Be optimistic. Even if it costs you more to purchase your home today than it did 6 months ago, buying a home is still a great way to build your wealth over time. Rental prices have risen just as quickly as home prices over the last 5 years, so at least you'll be building equity with your monthly payments.
I hope that helps and even though this market is crazy, I'm still optimistic about homeownership here in Alexandria. If you have any other questions about buying or selling give me a call. My personal cell is (320) 305-4604.