2 ms·
What is the context that determines whether or not people will consider a mortgage rate too high? For instance from 1970 through 2007 mortgage rates were at or
by tzs 2y ago
What is the context that determines whether or not people will consider a mortgage rate too high?
For instance from 1970 through 2007 mortgage rates were at or higher than they are now [1]. Aside from the '80s when they were 10-17% I don't recall people being overly concerned with 6-8% rates.
So what was it about the economy from the '90s through around 2008 that made those rates more acceptable than today's similar rates?
[1] https://www.freddiemac.com/pmms https://www.freddiemac.com/pmms
- xnx 2y ago> So what was it about the economy from the '90s through around 2008 that made those rates more acceptable than today's similar rates? House prices were lower (...because people couldn't money as cheaply)
- seanmcdirmid 2y agoYa, your rate was 10% but your house only cost $100k, at a salary of 40-50k that easily worked out. Now, we are in a lose-lose situation: rate goes up, mortgages are more expensive, but if rates go down, house prices explode so mortgages are still more expensive. Anything less than a surplus of housing is not going to lower or stabilize home prices.