Things are hard right now, but we are going into the Fourth Turning as described by William Strauss and Neil Howe in their book of the same name. We will emerge even better, we just have to carry on best we can. Many other generations have done it.
My first mortgage in the mid 1980's was an adjustable rate moving between 6.5-9.5% for a 30 year contract. 7% doesn't seem that unreal. The difference being that housing prices are up significantly and I am not convinced that wages have kept pace.
"The National Association of Realtors estimate the age of a first-time home-buyer is now 40, up 7 years in just 5 years. And up from 29 in 1981, when we had a functioning housing market."
That logic is hard to square with mortgage rates topping out at more than 18% in 1981. Either interest rates are not the primary issue, or the economy and society are so different from 1981 as to make comparisons meaningless.
It's an interesting dilemma. Inflation is the culprit. Banks and investors can hardly be expected to loan money long term without rates high enough to compensate for the slow devaluation of the dollar. That same inflation juggernaut has made housing prices go way up.
Inflation is an invisible tax on the people, and we're all getting hurt by it.
Inflation is caused by printing money faster than goods and services increase. Especially fiat money, which is nothing but an IOU from government, backed by nothing.
Things are hard right now, but we are going into the Fourth Turning as described by William Strauss and Neil Howe in their book of the same name. We will emerge even better, we just have to carry on best we can. Many other generations have done it.
I agree. I am still voting republican. Unfortunately DC/ Senate and the House
does not like President Trump or we the people. They are trying to destroy him and. his presidency. Unfortunately.
I was really upset they raised rates into an oil crises.
My first mortgage in the mid 1980's was an adjustable rate moving between 6.5-9.5% for a 30 year contract. 7% doesn't seem that unreal. The difference being that housing prices are up significantly and I am not convinced that wages have kept pace.
"The National Association of Realtors estimate the age of a first-time home-buyer is now 40, up 7 years in just 5 years. And up from 29 in 1981, when we had a functioning housing market."
That logic is hard to square with mortgage rates topping out at more than 18% in 1981. Either interest rates are not the primary issue, or the economy and society are so different from 1981 as to make comparisons meaningless.
It's an interesting dilemma. Inflation is the culprit. Banks and investors can hardly be expected to loan money long term without rates high enough to compensate for the slow devaluation of the dollar. That same inflation juggernaut has made housing prices go way up.
Inflation is an invisible tax on the people, and we're all getting hurt by it.
Inflation is caused by printing money faster than goods and services increase. Especially fiat money, which is nothing but an IOU from government, backed by nothing.
Does his analysis make any sense?
a) "the Fed yanked rates to near-zero to bribe voters into lockdowns" which drove home prices sky-high
b) The delta between the current artificial rate, and the prior artificial rate has consequences
c) Therefore we should lower rates, because, you know, its not the right time to pay the piper.
The issue is why are we stealing money from future generations, so we can live better? Am I the only one who thinks it amoral and disgusting?