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What were the housing prices like when they had that 15% mortgage? People loan money out at lower interest rates for homes because it's low risk because of the
by cosmotic 1y ago
What were the housing prices like when they had that 15% mortgage?
People loan money out at lower interest rates for homes because it's low risk because of the colateral of the house.
- daft_pink 1y agoFair. Obviously as interest rates increase, housing values decrease, but I do think that the near zero percent interest rate environment that was created after 2008 made little to no logical sense, that the current rates are normal and we shouldn't expect a return to near zero any time soon. I think there is a lot of agreement from the financial world on this point. If any correction is going to occur, it's going to be in the asset values themselves or through inflation or stagnation over time.