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To be fair, the people who have massive housing equity generally bought their houses when interest rates were sky high. In the 1970's, when you could buy a dec
by hardtke 8y ago
To be fair, the people who have massive housing equity generally bought their houses when interest rates were sky high. In the 1970's, when you could buy a decent house in Palo Alto for $50,000, the interests rates were 15-20%. As rates have gone down, the prices have gone up. Mortgage payments as a fraction of income have gone up much less dramatically than the sales prices.
- Qworg 8y agoHow'd that interest rate fare in the face of A) being able to refinance and B) inflation/rising wages? The principal/down payment is the first problem - interest rates just increase the cost of money, but get eaten away by time.