Loan Roller Coaster

 “Just Thinking"

The other day, I was talking to a friend of mine, we were discussing the current housing market, interest rates and buyer hesitancy. The opinions of the different generations with regards to home ownership and how their opinions affect the housing market. Mike said that he went back and check out the interest rates and what there effect was on the market. I thought that it would be interesting to see the excuses for not buying and the results of the market subsequently.

First of all, an overview of the generations, their opinions on homeownership and the market effects. Baby Boomers consider homeownership as an essential and tend to hold on to homes, thereby limiting inventory. GenX tend to see homes as a combination of investment and lifestyle they are the largest group of move up buyers. Millennials still desire homeownership but face multiple barriers: student debt, high prices, tight inventory. They have delayed home buying but are now largest segment of first-time homebuyers. Generation Z are still forming opinions many aspire to own but are cautious. They may redefine the ownership norms through shared equity models or multi-generational living.

1985 – Average 30‑Year Fixed Rate - 12.9%

“Interest rates are way too high!”

• Excuse: “Who can afford 12% mortgage rates?”
• Reality: Coming off the early '80s inflation crisis, mortgage interest rates were still historically high, even though they had dropped from the 18% peak a few years earlier. Many buyers hesitated, thinking rates would go lower or housing prices would collapse.

1995 – Average 30‑Year Fixed Rate - 7.9%

“The market's flat, why buy now?”

• Excuse: “Real estate isn’t going anywhere — I’ll wait for something to happen.”
• Reality: After the early ’90s recession and housing downturn, the market felt stagnant. Buyers feared buying into a sluggish market and questioned the value of long-term investment.

2005 – Average 30‑Year Fixed Rate - 5.9%

“Prices are insane — this is a bubble!”

• Excuse: “There’s no way this can last — I’ll wait for the crash.”
• Reality: Home prices had skyrocketed due to easy credit, speculative buying, and subprime lending. Many skeptical buyers stayed on the sidelines fearing a bubble — and by 2007, they were proven right.

2015 – Average 30‑Year Fixed Rate – 3.85%

“I’ve got too much student debt and can’t afford it.”

• Excuse: “Between rent, loans, and stagnant wages, buying is out of reach.”
• Reality: Millennials were entering prime buying years but faced new challenges: high student loan debt, tight lending standards post-2008, and fierce competition in rebounding markets. Affordability and lifestyle flexibility were common reasons to delay buying.

2025 – Average 30‑Year Fixed Rate – 6.75%

“Rates just shot up; I missed my window!”

• Excuse: “Rates were 3% a couple of years ago — now I’ll never be able to afford it.”
• Reality: After the low-rate era during the pandemic, buyers in 2025 are grappling with higher interest rates, low inventory, and still-high home prices. Many fear being priced out or believe they'll wait for rates or prices to come down — despite rent still rising.

Bottom Line:

Every decade has its reasons not to buy and yet, the people who took the leap and held on usually came out ahead. There’s never a perfect time… only the right time for you.

Let me know what you think.

@ChuckBarberini - #ChuckBarberiniRealEstate - @ChuckBarberiniRealEstate

@Golden_State_Guide_Service - @Citizen.Number.One