Those who lived through the late ’70s and most of the ’80s will recall that during 1981, a 30-year mortgage rate for a new home skyrocketed to over 18% interest. Even people with good credit were financing cars at over 21%. This historical context can help us put the current rates into perspective.
My experience during that time is vivid in my memory. I was employed at a car dealership, and despite the high interest rates, people were still eager to buy. I earned more selling cars in 1981 than I had ever made before, and this trend continued in the following years. Real estate agents were also making sales, and I joined in by purchasing my first house.
Despite the daunting interest rates, people found ways to adapt. They might have had to adjust their expectations, opting for smaller homes or vehicles, but they managed. This resilience is a testament to the fact that regardless of interest rates, the need for a home and a car remains constant. It’s a reminder that we, too, can navigate these financial waters with resilience and adaptability.
It’s crucial to remember that interest rates are not static. They fluctuate, and when they come down, as they always do, it opens up opportunities. People start buying bigger and better homes, cars and other luxuries. So, while it may require some restraint now, the future holds your reward.