Quote:
Originally Posted by username
Well the number reason why interest rates could hit 8% plus in the next few years is because of inflation. While it's still relatively tame right now (report comes out tomorrow), with all the money that's been pumped into the global economy over the last few years it's inevitable that inflation starts to pick up once that money starts to move. Once inflation gets going, so do interest rates. I'm not sure how old you are, but check out what rates were like in the early 80's when oil caused global inflation to take off.........you'll understand why so many people just walked away from their homes and the government instituted the dreaded NEP.
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I think rates went up around 18% at one point, for an extended time. I remember this because my parents bought a bungalow in Millrise for $64,000. It was 80% finished, and the construction company just walked away, and it was a bank repo.
Imagine buying a house on your credit card, that is how bad the rates were...