The interest rates may be at what was once historical norms, I agree, but look at the massively bloated prices of homes. Amortize $750,000 at 1.5% and at 7.5% and note the difference over a 30-year term. The monthly payment is several thousand dollars less at 1.5%. That’s how they turned buyers into suckers. It’s a Ponzi scheme. “They” control all the levers.
The interest rates may be at what was once historical norms, I agree, but look at the massively bloated prices of homes. Amortize $750,000 at 1.5% and at 7.5% and note the difference over a 30-year term. The monthly payment is several thousand dollars less at 1.5%. That’s how they turned buyers into suckers. It’s a Ponzi scheme. “They” control all the levers.
I agree that prices need to come down one way or another….rent too. Rents in ordinary cities and towns are now where they were in San Francisco and New York a few years ago and in the first tier higher cost cities rents are in the stratosphere. The reason for lowering interest rates in the first place was to make houses more affordable and to prolong the housing boom for boomers. Look how it has turned out!
The interest rates may be at what was once historical norms, I agree, but look at the massively bloated prices of homes. Amortize $750,000 at 1.5% and at 7.5% and note the difference over a 30-year term. The monthly payment is several thousand dollars less at 1.5%. That’s how they turned buyers into suckers. It’s a Ponzi scheme. “They” control all the levers.
I agree that prices need to come down one way or another….rent too. Rents in ordinary cities and towns are now where they were in San Francisco and New York a few years ago and in the first tier higher cost cities rents are in the stratosphere. The reason for lowering interest rates in the first place was to make houses more affordable and to prolong the housing boom for boomers. Look how it has turned out!