Notes from the Biking Broker: Historic Perspective

Information comes at us so fast these days that is it is easy to get caught up in the most recent batch of data points... and that immediate information becomes all that we can see. From time to time I think we should pause, step back from the current situation, and explore a more historical frame of reference to get a better understanding of what is actually going on.

For example, while it is true that interest rates have been increasing over the last 12 months, in a very real sense they are still at historically low levels. (see graph below).  Borrowing money is still a remarkably cheap way to leverage your current savings toward the purchase of property... starting the process of building equity for the future while in your new home.

Sometimes we need to look to the past to find our way forward.