audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
It didn’t drop below 1.63% this year, and that was a brief plunge. And it is just a bit higher than where it started this year @ 1.94%.
Last edited:
Just a point on debt and inflation. We got a mortgage on our first house in 1975. I don't remember the interest rate but it was clear at that time that inflation was bad and not looking like it would go away. In inflationary times you want a fixed rate mortgage. The banks got creamed, the debtors made out like bandits. Real estate really did well in our area (Silicon Valley).
As always, it depends on the particular situation. If you bought in 1975 at 9% rates and real estate goes up while your metro based area salaries go up, it could work out just fine....
I don't see the high-inflation environment that this country has experienced as necessarily benefiting debtors, particularly because interest rates have tracked and even exceeded the inflation rate. This table from Freddie Mac shows the average 30-year fixed mortgage rate in October 1981 at 18.75% ... plus 2.3 points! Looking at those numbers on a contract would discourage me as a home buyer. And the CPI at its inflationary peak never came close to 18%.
...
In inflationary times you want a fixed rate mortgage.
I don't get that, because for me it's the inverse. In _low_ inflation times you want a fixed rate mortgage.
Why: you can't predict the future. However, we do know that interest rates cannot go below zero on mortgages, upwards there is no such limit. In addition, most of the time salaries tend to inflate too in inflationary times.
the yc may become inverted