Interests rates are not historically insane though. My parents bought a home when mortgage interest rates were in the mid 10s. The interest rates aren’t the problem. It’s the ratio of the cost of living to wages that’s gotten to insane levels.
yeah, wages, housing inventory, housing prices compared to wages, public sector spending on social programs, stable employment, and consumer good inflation were all different back then too. one might say the fundamental material conditions of those earlier times were less bleak for workers.
which is why boomers all bought houses even at 7%.
borrowing 2-3x your salary at 7% is way different than borrowing 8-10x at 7%.
the rapid spike in interest rates is completely kneecapping already struggling people, because taking on debt hurts much worse in a credit crunch.
Interests rates are not historically insane though. My parents bought a home when mortgage interest rates were in the mid 10s. The interest rates aren’t the problem. It’s the ratio of the cost of living to wages that’s gotten to insane levels.
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yeah, wages, housing inventory, housing prices compared to wages, public sector spending on social programs, stable employment, and consumer good inflation were all different back then too. one might say the fundamental material conditions of those earlier times were less bleak for workers.
which is why boomers all bought houses even at 7%.
borrowing 2-3x your salary at 7% is way different than borrowing 8-10x at 7%.
the rapid spike in interest rates is completely kneecapping already struggling people, because taking on debt hurts much worse in a credit crunch.
Yeah that home also only cost like $20,000 which is basically nothing.