If things continue, in 5-10 years, dollars will be worth 50 cents, and it should be MUCH easier to pay your mortgage.
And, I'll eat my hat if we don't get back to ZIRP sometime in the next 10 years.
And, I'll eat my hat if we don't get back to ZIRP sometime in the next 10 years.
Your pay goes up. It just goes up 4% per year, while inflation goes up 10%. This does mean your loan becomes 4% "less" per year. It's just Big Macs go up 6%, making your pay worth less Big Macs. But your pay still becomes worth more loan repayments. The big increase only applies to new loans.
I would also like to point out that at 4% per year pay increases, houses become worth that amount less per year, for the same dollar amount. That means they "drop" 20% in price over 5 years.
If you're on a fixed 15-year or 30-year then inflation is generally working in your favor.
Salaries not going up is not directly related to mortgages, and while I can't speak to all jobs, has been pretty good in the STEM field.