Excellent research ! At the

[(former)FormerSanDiegan]

Excellent research ! At the absolute null in 1995, it was slightly below 10, staying there for less than two years.

At the end of ’95-early ’96 the 30-year rate was in the 8-8.5% range.

Let’s look at it from an investment standpoint.
Wwould buying a SFR as a rental at that time result in positive cash flow ?

Assume 8.25% loan
1.2% property tax
$50/month insurance
150K property

Using 9.5x rent implies a rent of 1315 per month

100% LTV:
PITI = 1127+150+50 = 1327
Negative cash flow of $12 per month before maintenance, etc
So, with No down, so there is no way to break even before tax considerations (I’ve also ignored PMI or increased rate due to 100% LTV).

90% LTV
PITI = 1014+150+50 = 1215
Postive cash flow of $100 per month before expenses and excluding tax considerations. Probably not break even after expenses, but positive after tax considerations.

80% LTV
PITI = 901 + 150 + 50 = 1101
Positive cash flow of $214 per month. Modest positive cash flow before tax considerations or considering opportunity cost of the down payment.

Conclusion : Previous low point in San Diego resulted in marginal (break even) cash flow from rental properties with 10-20% down.