Mortgage interest rates have nearly tripled in the span of just a couple of years amid inflation fears and strong economic growth.

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45 points

The difference is that the same house in 1990 at 12% still only cost $150k. Today at 7% it costs $1.2m

Source: the house I grew up in, county sales records.

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-1 points

There’s only a handful of areas where that level of appreciation happened. There’s about as many places that 150k house is the same or less because it’s a crime ridden neighborhood now, or there’s no economic activity in the area anymore. The average is more like 2-3x increase in the last 30 years.

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7 points

Right, these people are so quick to “well akshually” they completely ignore the inflated house costs since which layers more unaffordability on top of already unaffordability.

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7 points

150k at 12% is $1543/mo; in 2023 dollars, that’s $3609/mo. 1.2M at 7% is $7984/mo.

Over the same time period, the S&P500 has gone up by a factor of 13.6x - if you invested $150k in 1990 you’d have $2.04M today.

I’m not trying to make a point - I just thought this was interesting.

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