I have a friend who’s a little—okay—A LOT nervous about the economy.  But this is really nothing new; I think she’s been nervous about the economy for about the last 20 years.  Good times and bad, market ups and downs, she’s worried about what’s going to happen next.   In her world, the sky is always falling.

Now, I’ve been in the financial industry for longer than I care to mention—certainly longer than my youthful appearance would suggest.  And admittedly, I get concerned about an occasional market downturn.  But I don’t let it send me into a spiraling world of worry, despair, and ulcers.  Here’s why:

Our market is relatively young.  Do you realize that it took more than 50 years–until 1982—before the Dow Jones crossed the 1000 mark?  It was only then that the market began to really skyrocket, taking only 5 years to hit the 2000 mark, another 8 to hit the 4000 mark, and less than 4 more to hit the 10,000 mark.  In short, between 1982 and 1999, the stock market gained 9000 points!

Unfortunately, the people who are currently investing in—and reporting on—the market (including the mortgage market) seem to forget its history.  If you were to turn on the television or read an online market analysis, you’d almost believe that the Dow began functioning in 2003 (the last time the market was at today’s levels) and that the explosive growth that peaked in late 2007/early 2008 was normal.  That’s just simply not the case.

So I’m telling you what I tell my friend when she begins running and clucking:  Markets rise and markets fall.  Interest rates go up and down.  Property values change—not always for the better in the short-term.  But when you take a long-term perspective, both on investments and homeownership, growth is not only likely, it’s highly probable.    And I also tell her that Warren Buffet and the market foxes like him didn’t make money by buying high and selling low; they invested when the market is down and take advantage of future growth.

And here’s a little something else to remember—especially when it comes to buying a home in today’s market.  Just 15 years ago, people were clamoring to buy when interest rates on a 30-year fixed rate loan were at 8.00%.  10 years before that, 17% percent was a screaming deal.  Today’s rates start at 4.75% for that same 30 year loan, and loan professionals—at least, those with whom I work—are making mortgage loan information a whole lot more transparent and reducing loan fees and costs.  Now, combine those rates and that level of disclosure with home prices at a 5-year low…and things don’t look quite so bad, do they?

Chicken or fox?  You choose.  As for me…I’ve never much cared for feathers.