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…
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We are currently coming out of very low interest rates, coupled with a supply-crisis due to Corona, both of which have sky-rocketed prices, especially in housing, where supply is limited.
The rising interest rates should push down prices, however, since no one is selling (yet) and supply is still limited, prices come down way less than expected. (We have to wait until people have to re-finance their cheap loans to see some forced selling dropping prices.)
Now, since interest rates are high and governments have made building housing expensive (at last here in Germany), no one in their right mind would take up credit and build, right now. Which means the supply crisis will persist.
High prices + high interest rates + low supply + low wages is a really bad combo.
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