I am surrounded by boomers saying this that in their day interest rates were at 15% and we have it easy! I’m also surrounded by the younger generations saying this is ‘not the same thing’
Explain to me the reasoning…
In: 233
There’s a video going around with the math on it. If I recall correctly:
– average home price back then was about $49,000
– 20% down payment = $9,800
– average mortgage rate was like 14.7%
– monthly payment would be about $450
– average income was about $21,000
– today the average home price is like $460,000
– so a 20% down payment would be $92,000
– @ 7% the monthly payment is over $2,500
– current average income is like $80,000
– So home prices are 10X more expensive now
– Monthly payments are like 5-6X higher
– Income has only gone up 4X
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