Interest rate on my first mortgage rate was 14.5%, so this doesn't seem so scary, yet. Of course, inflation was also 14% that year, and we'll be lucky to escape that, too
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SUSTAINABILITY: Mortgage rate soars closer to 5% in its second huge jump this week. “With both rates and prices considerably higher, the median mortgage payment is now more than 20% higher than it was a year ago.”
Rates are going to have to go considerably higher before prices come back to Earth. As things stand now, mortgage rates are still below the inflation rate — free money, so why not bid up prices?
That easy calculation doesn’t work very well for those whose incomes don’t keep up with inflation, but if the goal is to impoverish Americans, all is going according to plan.
