Prices going parabolic according to the “Billion Prices Project” at MIT. They use real time data from online sales to help determine the REAL rate of inflation. It looks like we are up 2% since Christmas.
BTW, this reinforces my original proposition that buying a house was a good financial decision. Whether the nominal price of the real estate goes up or down doesn’t matter. My housing costs are now fixed and I can pay back the bank with increasingly less valuable dollars.
[quote=lifeizfunhuh]My housing costs are now fixed and I can pay back the bank with increasingly less valuable dollars.[/quote] Exactly! As SD-R said on another thread, you’ll be laughing in the coming years as your neighbors pay 8%, 9%, and 10% rates on their mortgages. So what if house prices drop another 5%-10% in nominal terms? Also, as Uncle Sam exits the mortgage business, 30-yr fixed terms will become more expensive and/or harder to find.
[quote=lifeizfunhuh]My housing costs are now fixed and I can pay back the bank with increasingly less valuable dollars.[/quote] Exactly! As SD-R said on another thread, you’ll be laughing in the coming years as your neighbors pay 8%, 9%, and 10% rates on their mortgages. So what if house prices drop another 5%-10% in nominal terms? Also, as Uncle Sam exits the mortgage business, 30-yr fixed terms will become more expensive and/or harder to find.
[quote=lifeizfunhuh]My housing costs are now fixed and I can pay back the bank with increasingly less valuable dollars.[/quote] Exactly! As SD-R said on another thread, you’ll be laughing in the coming years as your neighbors pay 8%, 9%, and 10% rates on their mortgages. So what if house prices drop another 5%-10% in nominal terms? Also, as Uncle Sam exits the mortgage business, 30-yr fixed terms will become more expensive and/or harder to find.
[quote=lifeizfunhuh]My housing costs are now fixed and I can pay back the bank with increasingly less valuable dollars.[/quote] Exactly! As SD-R said on another thread, you’ll be laughing in the coming years as your neighbors pay 8%, 9%, and 10% rates on their mortgages. So what if house prices drop another 5%-10% in nominal terms? Also, as Uncle Sam exits the mortgage business, 30-yr fixed terms will become more expensive and/or harder to find.
[quote=lifeizfunhuh]My housing costs are now fixed and I can pay back the bank with increasingly less valuable dollars.[/quote] Exactly! As SD-R said on another thread, you’ll be laughing in the coming years as your neighbors pay 8%, 9%, and 10% rates on their mortgages. So what if house prices drop another 5%-10% in nominal terms? Also, as Uncle Sam exits the mortgage business, 30-yr fixed terms will become more expensive and/or harder to find.
