[quote=kev374][quote=desmond]
“Two- thirds of student loans are held by people under the age of 40, according to the Federal Reserve Bank of New York, blocking millions of them from taking advantage of the most affordable housing market on record”[/quote]
This is just asinine! most affordable housing market on record?? You’ve got to be kidding me!
One cannot find anything decent under half a million these days which is probably 6X-8X the median income compared with a historic 3X-4X and they’re calling it the most affordable? In addition job security is much much lower these days than it was in the past.
Now, people will tout historic low interest rates but the average homeowner stays in their home 7-10 years and then what? 7-10 years down the road interest rates are most certainly going to be much much higher. So you’re going to by a 100% overvalued home at low interest rates, your monthly payment may be the same but what happens when you need to sell in 7-10 yrs to move up? Or perhaps people think they will live in the same home for 30 years? This whole low interest rate argument is the most foolish thing I have ever heard yet people still blindly chant it.[/quote]
Though I’m not sure about what interest rates will look like 7+ years from now, the rest is totally spot-on.
Well said, Kev. Low interest rates/high prices does not equal affordability, IMHO, especially when the job market is so tenuous. I’d much rather buy when interest rates are at historical highs, which would bode well for pricing going forward as rates dropped, all else being equal.
