In 1971, the average mortgage interest rate was 7.33%. If you were waiting for rates to drop before purchasing a home, you would have had to wait until 1993—a full 22 years—before seeing a significant decline.
But while you waited, something else happened. Real estate values quadrupled.
That’s right—while hesitant buyers sat on the sidelines, home prices soared. Those who bought in 1971, despite the higher interest rate, built significant wealth simply by holding onto their property.
