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> The low interest rates amortize the costs allowing affordability Negative real interest rates devalues income from work and up-values ownership of assets. In
by yobbo 5y ago
> The low interest rates amortize the costs allowing affordability
Negative real interest rates devalues income from work and up-values ownership of assets. Inflation is not in the interest of workers.
> housing prices and interest rates will back down to normal sometime soon.
Mortgage rates needs to rise until the real interest rate is positive - ie interest rate is greater or equal than housing appreciation.
- screye 5y agoOh yes, I misspoke. > back down to normal I agree. By down, I meant going back to being 2-3% higher than inflation and not being literally 'free money' by being behind inflation. > Inflation is not in the interest of workers. Agreed. I think my next sentence clarified that, but yes. In isolation, it does look like I am supporting inflation. My bad.