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If you were expecting a 1:1 comparison, you will be disappointed. But if the only counter-argument is that interest rates aren't as high (and give it time, rate
by mikestew 3y ago
If you were expecting a 1:1 comparison, you will be disappointed. But if the only counter-argument is that interest rates aren't as high (and give it time, rates didn't hit 18% in the 80s right away), we're just talking about magnitude. The underlying environment today sure has a bouquet similar to the 80s, with slight hints of recession, and a stagnant-housing-market finish.
- hedora 3y agoThe relative change is what matters. If rates were 20% for the last few decades then house prices would be lower, but mortgage payments would be approximately the same percentage of people’s income. Property tax rates would probably also need to be higher, since they are based on property value and not mortgage payments.