Well AN I remember those days really well. There was an extreme tightening of the money supply which was the way Volker dealt with the inflation issues in the mid to late 70’s. I cannot say what wages were because I was still in school although I worked in the labs at school and we were paid well for not doing crap. I do not believe people were getting the kind of 10-15% raises that you wrote about although some will claim that they did. I don’t buy it or if it happened it was the exception and not the rule.
So yes what you said about being in the catbird seat for owners is true however we will absolutely see asset depreciation in those cases of high rates. The golden question is how much. Now if you will be holding the property anyway and have it as a rental then yes, You will be raking in monthly income while paying out on a 3.5 or 4% mortgage. Nice.
Yes there were golden opportunities not long ago. They may come back but I don’t really think they will unless they are accompanied by rate shock, not foreclosure shock. I guess we will see.
