Quote:
Originally Posted by opendoor
Interest rates have also been at historical lows for the last 14 years. If they go up (which they basically have to at this point), housing prices are most likely going to respond. A 1M mortgage at 2.5% is the same payment as a $770K mortgage at 5%. And even 5% is low historically. At 6-6.5% (basically where were were pre-2008), that payment gets you about $650-700K.
I imagine governments will do everything they can to not raise the rates that much (if only for their own debt obligations), but then we'll likely just see higher inflation which also devalues the asset.
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Yep. Governments will either raise interest rates or let inflation run rampant.