Mortgage interest rates have been far, far higher than 7% in the past.
In 1981, the average mortgage rate hit 16.63%. The rates were higher than 7% all through the '70s, '80s, and most of the '90s, not dropping below 7% until 1998.
In 1981, the average mortgage rate hit 16.63%. The rates were higher than 7% all through the '70s, '80s, and most of the '90s, not dropping below 7% until 1998.
My first job back then paid $4.75 an hour, and I bought my first home for $37,500.
So go on, keep fucking telling me things were harder back then.
How do you think the principal got higher, magic?
There simply aren't houses.
Inflation doesn't help, but housing prices have risen way faster than the rate of inflation. So again: find the actual problem and solve it.
Because it’s their only high growth asset, and their largest.
How did it get that way?
You can go step by step through this process of root cause analysis and see that it is because our money is weak.