Quote:
Originally Posted by mhays
Here's a little fodder: A 30-year mortgage at 10% will cost twice as much per month as the same mortgage at 2.0%. At 17% it'll cost three times as much (during a chunk of the early 80s).
That's a decent chunk of the high prices that were common before the recent rate increases, and a big reason for the low prices long ago. Even though most people got the high twos, not two flat.
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Exactly. People were likely paying similar amounts of their income for homes that were worth less in the 1980s.