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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There’s been a big run-up in home prices over the past 3-4 years. That wasn’t a huge deal when interest rates were at 3%, but it makes monthly payments for homes at 8% a lot more expensive.
Ordinarily, rising interest rates would put downward pressure on home prices, just due to supply and demand. But, the rise from 3% to be 8% was sudden, and it created big disincentives to sell. If your mortgage is at 3%, you don’t want to move. And, so supply stays tight, keeping prices high.
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