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People don't care about inflation specifically, but they do care about how it is affecting them. For example, lots of people seem worried about getting priced o

People don't care about inflation specifically, but they do care about how it is affecting them. For example, lots of people seem worried about getting priced out of buying a home these days, which inflation has certainly contributed to in a big way.

annoyingnoob 5y ago
Its cheap credit that drives up home prices. Historically low interest rates are driving historically high home values. We are currently in some kind of home price bubble which will change when interest rates change. Zillow and recent sales say the value of my home is up 20% in 9 months. Last year a dozen donuts at the local family run shop was $9, this year it is $12. My daughter's specialist doctor raised the cost of an office visit by 30% this year. The cost of a burrito at my favorite spot is up 25% in two years. I could go on. I care about inflation, and it is real.
- imtringued 5y ago
  People can afford those absurd home prices. The bigger problem is that the previous owner of the land gets to extract a huge chunk of your labor by simply by owning the land.
  - annoyingnoob 5y ago
    https://www.thetruthaboutmortgage.com/use-this-mortgage-payment-chart-to-easily-compare-rates/ https://www.thetruthaboutmortgage.com/use-this-mortgage-paym... Lower rates mean a lower payment, maybe affording the ability to outbid someone for a home you want. When rates go up buyers have higher payments. The existing owner will have to pay taxes on the profits or reinvest in the same crazy market (perhaps losing a tax advantage).
    - leppr 5y ago
      Value is still shifting somewhere. Lower rates can force you to borrow more total value to outbid your peers, allowing the bank to extract the same or more value out of you. Same with taxes entering the equation. I don't reckon any monetary distortions benefit the common people. Society benefits from money being a reflection of labor as much as possible. Everything else is extraction of value.
    - jbay808 5y ago
      In Canada at least, primary residences are capital-gains exempt. Mortgage payments are typically almost constant with respect to interest rates, because the monthly payment is what tends to climb to whatever value the market will bear. Instead, the home value itself goes up and down inversely with rates, such that the monthly payment remains approximately unaffected by a rate cut.

annoyingnoob 5y ago

Its cheap credit that drives up home prices. Historically low interest rates are driving historically high home values. We are currently in some kind of home price bubble which will change when interest rates change. Zillow and recent sales say the value of my home is up 20% in 9 months. Last year a dozen donuts at the local family run shop was $9, this year it is $12. My daughter's specialist doctor raised the cost of an office visit by 30% this year. The cost of a burrito at my favorite spot is up 25% in two years. I could go on. I care about inflation, and it is real.

imtringued 5y ago
People can afford those absurd home prices. The bigger problem is that the previous owner of the land gets to extract a huge chunk of your labor by simply by owning the land.
- annoyingnoob 5y ago
  https://www.thetruthaboutmortgage.com/use-this-mortgage-payment-chart-to-easily-compare-rates/ https://www.thetruthaboutmortgage.com/use-this-mortgage-paym... Lower rates mean a lower payment, maybe affording the ability to outbid someone for a home you want. When rates go up buyers have higher payments. The existing owner will have to pay taxes on the profits or reinvest in the same crazy market (perhaps losing a tax advantage).
  - leppr 5y ago
    Value is still shifting somewhere. Lower rates can force you to borrow more total value to outbid your peers, allowing the bank to extract the same or more value out of you. Same with taxes entering the equation. I don't reckon any monetary distortions benefit the common people. Society benefits from money being a reflection of labor as much as possible. Everything else is extraction of value.
  - jbay808 5y ago
    In Canada at least, primary residences are capital-gains exempt. Mortgage payments are typically almost constant with respect to interest rates, because the monthly payment is what tends to climb to whatever value the market will bear. Instead, the home value itself goes up and down inversely with rates, such that the monthly payment remains approximately unaffected by a rate cut.