By Mike Bodeen · 23 March 2026
It’s Sunday afternoon. I rack my brain on what to write about our current market tumult. And I’m conflicted.
I’ve bought and sold homes for myself and clients since the 1970’s. I endured the oil crisis in 1979 which elevated inflation and hence mortgage rates from around 7.5% to over 11% (per Bankrate). I worked (sort of) in the early 80’s when mortgage rates hit 18%.
There was a nine month period of my career when I retired from real estate, never again to work in commission sales, or so I thought. Just previous to that stretch, I wrote offers, but not one succeeded. Not one.
I wrote a full price cash offer on a new spec home which the buyer asked for about $1,000 worth of work to be done from the seller/builder. The seller rejected the request. The buyer walked and decided they would stay in their home rather than buy.
I wrote another full price offer for a strip of commercial land that was going to become a future McDonald’s. The seller’s representative verbally said it “was a go.” But for whatever reason, the seller decided not to sell and took the property off the market. No deal again.
I was newly married at the time (1984), and shortly thereafter, my wife Karen became pregnant with our first child. I said enough of this real estate stuff and went to work with Karen in her Lake Tahoe house cleaning business, cleaning the toilets of the rich and infamous. I had to make money.
“Yes, rates could come back down, but that may be a fool’s bet. Should we instead be asking whether or not 6% to 7% rates may be our bottom?”
Through the grace of God, I was offered a managerial position for a real estate company in Truckee, California that paid a salary, commission and company overrides. Nine months after ending my real estate career, I was back in business for good.
What’s the point, Mike? Inflation, whether oil, or jobs related, or whatever, can elevate mortgage rates significantly. We are in a period of time with oil and gas prices soaring due to the middle east war uncertainty.
Yes, rates could come back down, but that may be a fool’s bet. Should we instead be asking whether or not 6% to 7% rates may be our bottom? And if so, should buyers become more aggressive to find that “right home” while there’s affordable time?
History teaches us that we ought not to think there’s a cap on inflation and hence rates.
To be honest, I don’t have a clue which way rate (home) affordability will go – nor does anyone else. But I don’t like the present trend, do you?