You are paying it down exactly the same amount as a 3% mortgage. The answer however is not much. That is why I did 15 or 20 year loans. Or just add some amount to your payment each month. Any time I refied a loan I kept making the same payment as the original loan. Does the same thing.

A lot of people complaining about interest rates. 7% is close to the historical norm. The ultra low rates in the ‘10s were an anomaly due to an economy that has weakness in the fundamentals. That finally caught up to us.

Money costs money. Retail money costs more.

The problem is that these low rates dramatically inflated the values of the home and now that rates have gone up, the home prices are not dropping. A house I looked at in 2011, based on inflation, should be selling right around $125k. However, iit recently sold for $230k, with no real change since I looked at it. To make matters worse, insurance in increasing at a greater percentage, as are tax valuations. They auditors office just raise my tax valuation by 50% to over $100k more than I could dream of get for a selling price. Some of my friends had theirs raise by 65%.

Yep. Because so many buy payment and not price and sales market reflected that.

But big line must go up no matfer what.

So a house I easily bought as a LT in the Navy in 2010, for $170k, is now $330k with much higher interest rates, taxes and insurance.

Navy LT pay hasn't doubled in that time. But housing price has probably tripled.

I know my mortgage in 2010 was around $1150/mo

It's about $2800 today if I were to buy the exact same house. No upgrades. 10 years older.

This is what happens when the government runs the economy

your boomer is showing… beach front property in Malibu was going for $50K back in the 70’s and a whopping $192K in the 80’s.

a house sold in Peach Tree City sold for $600K in 2022 and is now listed for $899K… and it’s going to be sell in no time

I would not count on it selling fast. The market is correcting however I don't think it will be a deep correction. New construction is now having to offer deep incentives plus interest rate buy downs.

New construction is the place to be these days. Great deals going on with the excess inventory.

Correct.

The problem is the cost of housing hasn’t been CPI driven once people starting looking at it as an investment versus a living expense.

This is caused by a number of factors, but principally due because there was no safe place to put money. You always have to have a spot to park money where it is safe, and with interest rates at or near zero, there really wasn’t any where else for it to go. Too much money, too few venues.

The increase in home values isn’t a strict degradation in buying power that simple inflation causes, where everyone is a loser. In the case of housing, there is a winner, namely the owner.

Interest rates have crept back to normal. There’s now a place for safe cash, and maybe the pressure on housing will subside a bit.

Unless you have a fixed 10 year lease (not likely) you can count on your rent going up every 2 years by 10%ish. No landlord will lock in a rent for more than 2 years and no landlord is going to forgo an increase unless the market tanks and housing becomes significantly more affordable. I did 2 year leases and 10% on renewal, that's standard. Some did 2 year lease with a 5% or market increase at 12 months.