In my view, if mortgage interest rates ever went to the mid teens again it would be a disaster, bigger than anything weve seen.
Its obvious to everyone I guess but Ive only been looking at it lately. With house prices so high many home owners will have a very large amount on loan. 15%+ on 3-400k would kill most families. Back in '91 ish when rates hit 18% or so, I would guess most mortgages would be around 50k or so? That wouldnt have been such a big disaster, average wage might have been about 20-30k?
If the same truck hit us now wouldnt it mean absolute disaster?
Can that ever happen in a climate where house prices are 6-7 times median income?
Being a global economy, and being the only nation left with house prices so high (am I right there?) is there a possibility that the global money markets could push us to high interest?
PS Im thinking of going from a 50k mortgage to a 400k mortgage for the house of our dreams very shortly, I ponder this sort of stuff all the time heh, and yes I may fix some for 10 years..
Its obvious to everyone I guess but Ive only been looking at it lately. With house prices so high many home owners will have a very large amount on loan. 15%+ on 3-400k would kill most families. Back in '91 ish when rates hit 18% or so, I would guess most mortgages would be around 50k or so? That wouldnt have been such a big disaster, average wage might have been about 20-30k?
If the same truck hit us now wouldnt it mean absolute disaster?
Can that ever happen in a climate where house prices are 6-7 times median income?
Being a global economy, and being the only nation left with house prices so high (am I right there?) is there a possibility that the global money markets could push us to high interest?
PS Im thinking of going from a 50k mortgage to a 400k mortgage for the house of our dreams very shortly, I ponder this sort of stuff all the time heh, and yes I may fix some for 10 years..