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But in the 70s/80s mortgage rates were ~15%, compared to ~ 3% today. So you still spent a significant amount of money on a mortgage.
by ChrisLomont 6y ago
But in the 70s/80s mortgage rates were ~15%, compared to ~ 3% today. So you still spent a significant amount of money on a mortgage.
- x87678r 6y agoYes but as above even with high rates the payment was lower.
- ChrisLomont 6y agoInflation adjusted housing cost per square foot has remained remarkably constant for decades. Thus, given higher interest rates over the same fixed timeframe, relative payments were higher.
- x87678r 6y ago> Inflation adjusted housing cost per square foot has remained remarkably constant for decades I think you mean for the first year. With higher inflation everyone got big wage rises each year which quickly made mortgages more affordable. Now wages are stagnating so even 10 years later most people dont earn much more than when they first took out the mortgage.
- ChrisLomont 6y agoCare to show me these big wage rises each year?