Quote:
Originally Posted by FlamesAddiction
Interest rates wouldn't be so bad if home prices and wages kept pace over the years. Even though 6% isn't grossly high historically, it is certainly worse when you consider mortgages are at least 4-5 times larger now than they were when interest rates were as high or higher, and that more monthly income goes to paying mortgages. For people lucky enough to have a mortgage of course, assuming you can still pay.
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Another thing to keep in mind was that during those record high interest rate times, they also had ridiculously high rates on guaranteed investments. With a 10+% return, if you have a 25% downpayment, you can wait 4ish years, and you'll have a 50% downpayment, plus whatever else you can save in that time....not the case anymore. Now it's struggle to get a downpayment...then if you don't act now, in 4 years, that downpayment has likely decreased relative to price.