The point i’m trying to make though. Is that higher interest rate on a mortgage isn’t going to occur in just a vacuum. Everyone is talking about if mortgage rates go up, home prices come down, they can go off and buy a home.
BUT, I think those people are neglecting that when mortgage rates are going up, everything is going to go up. Credit card aprs, car payments, utilities, etc. Inflation is going to be rampant. And companies are going to have harder time financing themselves.. Meanwhile, point me to a job that average joe’s have where the salaries are rising faster than inflation…
Those that are hoping for higher rates so that house prices fall may have a rude awakening. Unless you’re NOT average Joe that doesn’t need to work, you’re going to get hurt with higher interests across the board, anyway.When that happens, the economy is going to come to a standstill. most folks won’t have the financial capability to buy when prices are that low imho. Happened in the 80ies. Gonna happen again.
Given the choice, I’d settle for the lower interest, higher home prices..not necessarily for my own interests. I do think lower borrowing costs have generally stimulated other parts of the economy that wouldn’t have been possible.
