4 ms·
My rent doesn't change with interest rates.
by xapata 5y ago
My rent doesn't change with interest rates.
- JKCalhoun 5y agoThat's true, rent keeps going up? A fixed loan doesn't change with interest rates either.
- xapata 5y agoRent increases are a cause of inflation (as part of the basket of goods that defines inflation), which in turn causes interest rate increases, which then cause home price decreases. Homes are like fixed-income securities. When interest rates go up, the value of existing securities goes down.
- sremani 5y agoSo does my mortgage that is why it is called 15 year FIXED.
- xapata 5y agoYes, as I said, you care about the monthly payment, not the lump sum price of the house.
- matwood 5y agoDaily no. But higher interest rates and high inflation absolutely leads to higher rents each year when your lease renews (unless of course your in some rent controlled environment).
- xwdv 5y agoNo, but in 20 years you’ll be paying rent with expensive 2041 dollars while the 30 year fixed rate mortgage is still being paid in cheap 2021 dollars.
- xapata 5y agoYes, but it turns out I came out ahead from 1990-2021 by having all my investments in the stock market instead of housing.