Parabolic Mortgage Rates – Buy Sell Stay – DR. TOM GROOMS (Henley Ph.D.) … Invest in Expertise

Parabolic Mortgage Rates – Buy Sell Stay
Thoughts of author Tom Grooms
Professor of Undergraduate, Graduate, Doctoral Economics

Americans benefited from 2.9%-3.35% mortgage rates after the 2008 financial crash of the American economy. From 2008-2010, this started a cash parabolic movement of home mortgages hoping for a temporary pause in the fall of all financial markets.

Risky loans, stock market manipulations, and poorly managed central banks assisted in the collapse of a sizeable single company sending financial terror and financial shockwaves worldwide. This one factor says it all about how sensitive capitals have permitted their currency to erode under bad management which continues worldwide to this day.

Marketing & Economic Cycles

1929 Depression Cycle begins by the Federal Reserve of 2013

1940 Recovery Cycle begins with World War II

1947 Prosperity Cycle begins with End of WW II Births

1963 Recession – Historical Peak of America Prosperity as a Country

1971 Depression Cycle begins with Every Country Off the Gold Standard

2030? Recovery Begins with Country Debt Reversal Worldwide

(Source: Grooms, Keeping It In The Family, 2024).

Now that you know the actual cycle of the past you should understand with much greater clarity why what has happened, what is happening today, and what to anticipate happening tomorrow. If you apply these periods to what you already know then everything makes sense that has happened and fit nicely within each time frame of each cycle.

Every government worldwide simultaneously has been fighting the never-ending erosion of the value of their currency and applying the continuing increase in national debt in order to prolong an economic collapse and to remain in office. There are no exceptions.

This puts you into a swamp of misinformation and fog-like thinking in trying to decide whether to sell or buy your next home with a mortgage or pass altogether. This is what we will now address.

Home Values

The best home-value target for your house or vacation home is what someone is willing to pay. Since 1971, the price of homes have been steadily rising due to the simultaneous rising debt of America and the peak 2008-10 bubble of distorted home values and mortgage rates, but that restructuring of debt and financial asset period is over.

Buy Now or Stay Forever

Those of you holding a 2.9%-3.35% mortgage rate are perplexed about whether to give this historical advantage up and buy the next desirable home. If you think this, then you are confused about the reality of the times.

Americans spend the greatest part of their life at work or home. Work can easily and unexpectedly change your circumstances, but it cannot change the happiness you have every day in your home-refuge from the world.

To help sober you up, don’t let any mortgage rate control your life. At one time I had a 16% 30-year mortgage but it was only temporarily for a couple of years, refinanced when the mortgage rates changed, and it was worth every penny.

The increase in the value of that home and rise in equity was significant. By acting and thinking of excuses not to buy in isolation of self, you can make greater wealth by buying what you desire while others wait to see what someone else does.

Hesitation causes loss while acting makes gains in bad times. You don’t try to force your past situation into the present situation.

The roulette-price range of homes in the current condition from $250,000-$500,000 will continue to sell in this market-turmoil based on declining prices generated from foreclosures and liquidations. This price-class of homes are under duress by the scheme of banks and large homebuilders due to most of these sellers and buyers are desperate financially.

The $1,000,000 price-class homes will continue to increase in value and price. They typically sell to cash buyers outside the scope of the banks and home builders.

The best bargain on a home in America is buying a $1,000,000+ home under one million dollars. The worst of times often creates the best time to make good deals.

Let’s look at this another way. Whatever the mortgage rate and the price of homes at the time, remember everyone is competing for the same homes with the same mortgage rates under the same limitations.

Whether you are making a lateral move, upgrading to a larger home, moving to a new neighborhood, seeking better schools for your family, downsizing as a senior or want to be debt-free, the worst decision you can make is to wait. Time will destroy your dream and happiness if you hesitate because it will never get any better or be any better time to act and capture the home you want before someone else acts before you.

The Federal Reserve and Congress has failed the American people. Because of their neglect, past actions and omission to act, we might be looking at 8%-8.5% mortgage rates in 2027 before this is all over.

At present, the 6%-6.25% mortgage rate is a great historical mortgage rate you might be wise to act on sooner rather than waiting for later. As with most things in life, time calls for change and it’s best to accept that fact and act now before mortgage rates go up again and the price of that home you’re looking at costs more.

The price of homes in reality aren’t dropping even though many sellers are desperate to sell at any price and are dropping their listing price because they have to find a buyer. The typical public consumer sees only the change in the price of houses listed for sale and thinks of yesteryear when mortgage rates were low, therefore exist a conflict of interest in to Buy Sell Stay.

In actuality, homes are becoming more expensive every day because of the drop in the value of our dollar. This brings a lot of confusion into play among 95% of Americans not knowledgeable about marketing, finance and economics understanding how the financial markets work.

The answer is if you want change and aren’t happy where you are then BUY now and don’t wait on what’s not coming. Situations like this end becoming I whish I had done that.

Sell Now or Stay Forever

If you’re holding off on selling your home at present market prices don’t because the next home you purchase should be equal to or greater in value over the next few years. It’s easy to feel like your not sure.

If you’re thinking I can’t give up the low mortgage rate I have for a higher mortgage rate to buy the next home your spouse wants or the home of your dreams don’t.

If you base your decision on buying a home or selling a home based on mortgage rates, you allow the banks and mortgage companies to control your life. Remember it’s all a game, take control of what you want in life.

Compare the dollar amount of interest you are paying each month on your 2.9%-3.35% mortgage rate with the dollar amount of interest you would pay each month on a 6%-6.25% mortgage rate. Now subtract the total amount you are paying in interest each month from the amount of interest you would pay each month on that new home.

You are now an expert on your own situation, take advantage of it.

Caveat
This article is based upon extensive reading, research and experience.
The thoughts are the sole opinion of the author and nonadvisory and nonpolitical. The written content is based on experience, opinions, and ideas and research of the author. The author is not engaged in rendering advice. Quotation of passages for purposes of academic research, academic papers, criticism, education, review, and teaching are permitted with proper acknowledgment of the author. All rights reserved.

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