Real estate investors who are currently in the middle of building a new home to rent or an apartment building all know the advantages investing in real estate provides. There are certainly income tax advantages, lots of them. And someone else pays for the mortgage, the tenant. At least that shouldlock today's rates be the situation or the investment may not make the best of sense. These advantages in one form or the other have been around forever. But in today’s current environment, there is another major one that will impact the investment for as long as there is a loan on the property. Fixed mortgage rates.

When you look back at financing costs as far back as the early 1980’s, interest rates were in the double digits. The high double digits. Slowly they came back down and in the early 1990’s, they fell into the single digits. The real estate industry thought the home buying floodwaters would soon come if only rates got into the 9.00 percent range. Think about that for a moment. 9.00 percent? Rates soon fell into a rather familiar range over the next decade bouncing between 7.00 and 9.00 percent for about the next 10 years.

Beginning in late 2002, rates started on another long term trend and rates moved between 6.00 and 8.00 percent for several years before the bottom fell out in 2009, ultimately hitting a record low of around 3.50 percent in early 2013.

Historically, mortgage rates stay in a particular range for extended periods before making another move. Are we near that move now? Are we about to see rates creep back up and cycle between 4.50 and 6.50 percent? If so, then now is the time to invest in real estate and if you’re financing, you can do no better than locking in today’s rates. Go ahead, make the move. You’ll be patting yourself on the back for decades to come.