Work Work Work Thread

[megladon8]

Inflation will reset everything.

Also, people who didn't capitalize on the lowest interest rates in 60 years will be kicking themselves when the housing market resets. (notice I didn't say pop)

But aren't the low interest rates meaningless when the cost of the housing itself is so obscenely high?

The house I grew up in was 300k when my dad bought it (in 91), and is now 1.6 million.

[Dukefrukem]

But aren't the low interest rates meaningless when the cost of the housing itself is so obscenely high?

The house I grew up in was 300k when my dad bought it (in 91), and is now 1.6 million.

No. Because you'll end up spending more money on the house with a high interest rate and lower housing prices, then you would if you bought with lower interest rates and high housing markets. Add inflation into the mix and you're in a much worse spot then you could have been in.

A difference in interest rate by a point could mean for an additional $50-100k you paid for on a house after 30 years (depending on the market). For my area it's closer to $200-300k.

I was shocked when I looked at my statement this year. I literally just moved last July and the principle on my mortgage is MELTING away because the rate I bought is so good. It hasn't even been a year yet. My previous two homes I never saw the principle move this fast.