Originally Posted by
HelloNewnan
%7-8 was a pretty good deal in the late 90s-pre 9/11, so I think your metrics are off a touch. That's right around the historical average for mortgages, so if anything, %5 is considered a bit low.
my metrics are not off, I was responding to a poster saying people were complaining about 5% mortgages. I was merely pointing out mortgage rates have not been 5% without a buy down in awhile. I was also pointing out those higher rates came with cheaper houses.
the average home price in 1999 was just over 200k. That would be 375k in today’s dollars. Yet the average home price today is 465k. An average interest rate of 7.5% vs the current 6.5% does not make up that difference.
I would gladly trade to have 90s interest rates for 90s home prices.
Originally Posted by
HelloNewnan
If the economy NEEDS cheap money, that's an indicator for bigger problems.
Completely agree. However the housing market was allowed to run wild with sub 3% loans for too long. That has created a huge divide of those who bought before 2021 vs after. My mortgage is about 2.5-3x more than if I had bought the same house in 2019. Unfortunately there aren’t too many good ways out of this.