12/30/2025
Perspective is everything. Right now, everyone's waiting for rates to drop.
"I'll buy when rates get back to normal."
But what if 'normal' isn't what you think it is?
Let's talk about what mortgage rates have actually been throughout history:
1970s: Average rate around 8-9%
1980s: Hit 18.45% (yes, eighteen)
1990s: Hovered around 8-10%
2000s: Dropped to 6-7%
2010s: Historic lows of 3-4%
The 3% rates of 2020-2021?
That wasn't normal. That was a once-in-a-lifetime anomaly.
What everyone's calling "high" right now is actually what our parents' generation considered standard.
And they bought houses.
And built wealth.
And didn't wait for the "perfect rate."
Here's what they understood that we've forgotten:
You're not marrying the rate.
You can refinance when rates drop.
But you CAN'T refinance:
The price you paid (it's going up)
The equity you missed (appreciation compounds)
The rent you paid (gone forever)
The time you lost (can't get it back)
The buyer who waits for rates to drop misses this:
When rates drop, prices spike.
The buyer who acts now gets:
Negotiating power (less competition)
Better price (sellers are realistic)
Immediate equity building
Then refinances when rates drop
Wins twice
"Historically high" and "historically normal" are very different things.
We've been spoiled by historic lows.
Now we're back to historic norms.
And historic norms still create millionaires.
