Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So was I. I bought my first house in Dec 1985. 9.9%
I had a contract in 1980 with a custom house. If rates were 14 or above I could bolt. We ended up staying and signing at 14%. I converted to an arm the next year and rates dropped. We moved, rented out, then sold the house. Built another in 1984 with an ARM at 10%, rates dropped of course over the '80's and '90's. We still live there and its paid off.
If rates went to 10% on home mortgages today, many would bolt or worse.
I had a contract in 1980 with a custom house. If rates were 14 or above I could bolt. We ended up staying and signing at 14%. I converted to an arm the next year and rates dropped. We moved, rented out, then sold the house. Built another in 1984 with an ARM at 10%, rates dropped of course over the '80's and '90's. We still live there and its paid off.
If rates went to 10% on home mortgages today, many would bolt or worse.
All despite you acknowledging that isn't what happened with high rates. I'm not even arguing they should be as high as in the early mid 80's. They shouldn't. I bought a house, you bought a house, mom bought a house......
All despite you acknowledging that isn't what happened with high rates. I'm not even arguing they should be as high as in the early mid 80's. They shouldn't. I bought a house, you bought a house, mom bought a house......
It's never black or white. High rates, less borrowing, less building, fewer home buyers.
I knew no one else buying in 1980.
I knew a ton buying in 2004.
If rates were 10% today I have no doubts my local picture would be different than the boomlet we are currently seeing.
It's never black or white. High rates, less borrowing, less building, fewer home buyers.
Few are borrowing now with historically low interest rates.
Quote:
I knew no one else buying in 1980.
I knew a ton buying in 2004.
If rates were 10% today I have no doubts my local picture would be different than the boomlet we are currently seeing.
There is no boom. Some areas are doing well like where the new fracking businesses have moved in but with the wages that comes with those jobs a higher interest rate isn't going to stop them.
Big dollar houses are doing well but that is because of the governments welfare programs for the markets. The government subsidizing high incomes homes is no better than when they were doing it for low income ones.
Few are borrowing now with historically low interest rates.
There is no boom. Some areas are doing well like where the new fracking businesses have moved in but with the wages that comes with those jobs a higher interest rate isn't going to stop them.
Big dollar houses are doing well but that is because of the governments welfare programs for the markets. The government subsidizing high incomes homes is no better than when they were doing it for low income ones.
Things are picking up in areas I know. Locally, Phoenix, and some SoCal.
You suggest we should move to a 10% rate and help our senior savers.
This is not good for the long term health of a country.
That's probably true, but he doesn't blame the FED for it. I said "Prove the actions of the FED are hurting more people than it helps". Your link doesn't come CLOSE to doing that. The author's main claim seems to be that CAPITALISM generally leads to more income inequality - and that the time period from 1945 to 1980 was a period of UNUSUAL gains for the middle class - and that since that time we have returned to a MORE TYPICAL situation for a Capitalistic society (ie that the wealth gap widens over time).
Ken
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
