Economy

SWBTATTReg

(24,099 posts) Fri Sep 9, 2022, 02:00 PM Sep 2022

Mortgage rates are at their highest level since the Great Recession...

I didn't post the entire thing/article. Articles are coming out regarding the highest in a while Home Interest Rates.

My comment regarding this is perhaps, just perhaps those of us w/ CDs, etc., will at least perhaps get a better rate of interest on our CDs, our interest rates paid on our Savings, etc. Perhaps one good thing coming along w/ this news of higher interest rates for home ownership.

7 replies

= new reply since forum marked as read

Highlight:

Mortgage rates are at their highest level since the Great Recession... (Original Post) SWBTATTReg Sep 2022 OP

Need to outlaw or tax the crap out multigraincracker Sep 2022 #1

Should be even higher- traditionally, rates avg. 5-7% Fiendish Thingy Sep 2022 #2

My second house, bought around 1980 was financed at 11 1/2%. Chainfire Sep 2022 #3

They've been crazy low for too long. Scrivener7 Sep 2022 #4

o they are not snowybirdie Sep 2022 #5

The Great Recession was 2007-2009 progree Sep 2022 #6

Median house price was 3x median income in the 80s, it's close to 7x now progree Sep 2022 #7

multigraincracker

(34,080 posts)

1. Need to outlaw or tax the crap out

Reply to SWBTATTReg (Original post)

Fri Sep 9, 2022, 02:03 PM

Sep 2022

of big money buying up all of the single family home. NOW, they can now rent them back for triple a house note.

Fiendish Thingy

(18,526 posts)

2. Should be even higher- traditionally, rates avg. 5-7%

Reply to SWBTATTReg (Original post)

Fri Sep 9, 2022, 02:24 PM

Sep 2022

Higher rates will bring downward pressure on prices, making homes more affordable for millennials and Gen-Z’s.

Higher rates will also reward savers, and cool inflation.

Chainfire

(17,757 posts)

3. My second house, bought around 1980 was financed at 11 1/2%.

Reply to SWBTATTReg (Original post)

Fri Sep 9, 2022, 02:47 PM

Sep 2022

Scrivener7

(52,746 posts)

4. They've been crazy low for too long.

Reply to SWBTATTReg (Original post)

Fri Sep 9, 2022, 02:56 PM

Sep 2022

snowybirdie

(5,629 posts)

5. o they are not

Reply to SWBTATTReg (Original post)

Fri Sep 9, 2022, 03:13 PM

Sep 2022

Look it up. We had a 6%+mortgage in 1967,plus another percent or so of mortgage insurance. At that time mortgage rates were high. Some as high as 8 or 9 %.

progree

(11,463 posts)

6. The Great Recession was 2007-2009

Reply to snowybirdie (Reply #5)

Fri Sep 9, 2022, 03:33 PM

Sep 2022

Title of the OP

Mortgage rates are at their highest level since the Great Recession.

progree

(11,463 posts)

7. Median house price was 3x median income in the 80s, it's close to 7x now

Reply to SWBTATTReg (Original post)

Fri Sep 9, 2022, 03:40 PM

Sep 2022

https://www.democraticunderground.com/100216658196#post8

The mortgage payment is essentially the interest rate X the house price (yes I know its a bit more than that to pay down the principal over 30 years or whatever the term is, and yes I know the formula). Am tired of boomers bragging about how super-high mortgage rates were in the 80's and how horribly tough their lives were, and how the Gen-Z and millenials have it so easy and blah blah blah blah blah. They leave out the house price part of it.

I am a boomer and bought my house in June 1980, so I know what high mortgage rates are. Yes, it was hard, but not impossible -- house prices were about 1/5 of what they are now.

As for higher mortgage rates -- they don't help anyone except the bank. They slow down the price increase (so far), maybe lower prices in some areas, but when you multiply the mortgage rate by the house price, the mortgage payment is a higher number than before. Tell me the mortgage payment is coming down and I will start cheering. Ecstatically.

Reply to this discussion