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Sure. Now tell me about his monthly payments on a 30 year mortgage for that same house, as a fraction of his monthly pay, then and now. The demand part of the
by AnimalMuppet 2y ago
Sure. Now tell me about his monthly payments on a 30 year mortgage for that same house, as a fraction of his monthly pay, then and now.
The demand part of the supply/demand curve on houses is set by monthly payment, not purchase price. Interest rates change the relationship between the two.
- StanislavPetrov 2y agoSure. He had a 20 year fixed mortgage, which he paid off entirely on the same blue collar job, with low monthly rates because he was able to save and put down 50% in cash, which represented only 1 year salary. The same worker today has to save up 12 years worth of salary to put down 50% on the same house. It is amazing how so many can't understand that the USA has entirely changed for working people in the last few decades. I should include that on his salary he was also raising two children, could afford for us to see the doctor/dentist on a regular basis, owned a car outright while my mother stayed home to raise the kids.