Comment on Housing prices
Kurtismayfield@lemmy.zip 1 week ago
3% mortgages did tghs. If mortgages were kept around historical averages of 7 percent the asset inflation wouldn’t have occurred. The monthly costs at 7 percent currently are unaffordable except for the top 20%.
Hikermick@lemmy.world 1 week ago
That’s with 7% being an average, they were in the high teens in the 80’s. Funny how that works. Rates go up, house prices go down and vice versa. Supply and demand of course but it’s as if cost of living is based on what you can afford to pay not what the product is worth. Throw in property taxes and there’s another pesky variable affecting the price. I once considered buying a vacation cabin in NY state because the price was remarkably cheap until I saw the property taxes. A mortgage gets paid off but property taxes are forever. I guess my long, rambling point I’ve piggyback onto yours is it’s more complicated than “capitalism sucks”
Kurtismayfield@lemmy.zip 1 week ago
Allowing the Fed to artificially keep interest rates down for 15 years is not “Capitalism sucks”. Its pure, unadulterated asset inflation purposely done.