Quote:
Originally Posted by DoubleF
Has anyone else felt more average people are more open to taking on larger debt loads right now when interest rates are higher than when interest rates were lower?
And I'm not talking about for necessity reasons. I'm talking for frivolous spending reasons.
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I've noticed people are still eager to take on huge mortgages, because they feel if they don't get into the housing market the property values will continue to inflate faster than they can save. Even though they'll be house-poor in the short term they feel a measure of relief if they qualify for the financing with interest rates such as they are, because they think they'll be in better shape five years from now predicated on the assumption interest rates drop.