Quote:
Originally Posted by cargoman
Since I just bought a house and am locked in at 4.25% for the next 30 years....I would say my personal impact equates to....." I do not give a crap"
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well yes and no .
higher longer term rates mean higher inflation expectations .
higher inflation means everything about your house will cost more and the mortgage 30 years from now may be the smallest cost .
when we all bought houses in the 1970's they were 35k . the mortgage was a lot of money in those days and was far more than our rent at 275 bucks a month .
well today those houses are paid off and real estate taxes are 12-18k on those homes and 450 a month for heat and utility's .
the 275 buck mortgage is chump change in the scheme of things because of inflation and even having the house paid off saves very little in the end . that mortgage money now barely covers cable tv and a dinner out.
so yep , you better care where rates go , because rates and inflation track each other .