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Mortgage interest rates have been far, far higher than 7% in the past. In 1981, the average mortgage rate hit 16.63%. The rates were higher than 7% all through
by Turing_Machine 3y ago
Mortgage interest rates have been far, far higher than 7% in the past.
In 1981, the average mortgage rate hit 16.63%. The rates were higher than 7% all through the '70s, '80s, and most of the '90s, not dropping below 7% until 1998.
- TheSpiceIsLife 3y agoI know, I was there. My first job back then paid $4.75 an hour, and I bought my first home for $37,500. So go on, keep fucking telling me things were harder back then.
- ethanbond 3y agoNobody is saying things were harder they’re saying interest rates aren’t the problem. Note the principal on your first home.
- armatav 3y agoIt’s definitely the interest rates in combination with incessant printing into inflation. How do you think the principal got higher, magic?
- ethanbond 3y agoBy not building homes at anywhere close to the rate of population growth. It's so obvious by looking at the data you'd be gobsmacked anyone is talking about anything else before simply building more houses. Eliminate most zoning, bring in labor from outside the country, train up domestic labor, create incentives for construction and construction tech, so on and so forth. There simply aren't houses. Inflation doesn't help, but housing prices have risen way faster than the rate of inflation. So again: find the actual problem and solve it.
- armatav 3y agoWhy do you think neighborhoods with single family homes that have insanely high appreciation don’t want new houses built? Because it’s their only high growth asset, and their largest. How did it get that way? You can go step by step through this process of root cause analysis and see that it is because our money is weak.