Quote:
Originally Posted by Johnny199r
It's ironic how many people are complaining about these rates saying they are crippling the economy/homeowners, yet this range of rates is historically where rates usually sit.
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Rates mean almost nothing on their own if asset prices reflect those rates. A $300K house at 10% is the same payment as a $625K house at 2% and people are going to treat those as equivalents.
The issue is that rates are rising so quickly, so people who bought at 2% are getting pinched. I guess you could say no one should have ever bought a house when rates were so far below the historical norm, but when you have a sustained 10+ year period of low rates, that's really not a realistic argument.
And it's important to think in relative terms. People know the difficulties that people had in the early '80s when mortgages went from 12% to 20% in a short period of time, but that increase is about the same as mortgages going from 2% to 6.25% now.