There was a time in the past when interest rates on mortgages reached 18%. There have also been times when rates fell below 6%.

The editor of London's prestigious news weekly, The Economist, pointed out that an 18% mortgage is really no more expensive when all interest rates (and the rate of inflation) are very high than is a 6% mortgage in a low interest rate and low inflation environment. Technically, this is true. The trouble is, interest rates change−constantly.

That 18% mortgage, with high monthly payments that made it very difficult to qualify for in the first place, looks very expensive when interest rates ultimately fall. Similarly, that 6% mortgage looks great when interest rates later rise above that mark.

What is true of real estate, though−as a great many Americans have learned−is that you can refinance your mortgage when rates decline. This means that there really isn't a good reason to wait for low interest rates to buy the home you want and need. Instead, what we should do is wait for low interest rates to refinance the loan that has already served us well.

The difficulty is one of perception. When rates rose to 18%, we began to get used to higher rates, thinking we'd never see single-digit interest rates again. Similarly, when rates fell to 6%, we got used to that−and 7% rates seemed obnoxiously high. The reality is that, while interest rates change constantly around us, the value we get from our home is amazingly constant and strong. Sometimes, the bigger picture puts you in closer touch with reality! For real estate matters call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.