3 ms·
If we’re poorer but I can actually afford to buy a house, sign me up. Low interest rates do nothing except turn every market into a casino. Place I wanted to r
by rhexs 4y ago
If we’re poorer but I can actually afford to buy a house, sign me up. Low interest rates do nothing except turn every market into a casino.
Place I wanted to retire to went from 800K, which is attainable, to 2.1 million in the last two years.
Bring on the high interest rates.
(Good luck though, high interest rates kill nearly every sacred cow in politics)
- nly 4y agoCareful what you wish for. It's entirely possible that increased rates will depress house prices but, on balance, houses still get less affordable. That $2.1M house might go down to $1.5M, but if rates go from 6% to 10% you'll be paying more each month (assuming 20% down, borrowing over 30 years) Worse, if prices continue to sink you'll be trapped in negative equity.
- rhexs 4y agoYou’re correct that the average American non-saver can afford less house with high interest rates. This would be good news for savers however.