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deep SW On. | Not an answer ,but a thought that interest rates prime/mortgage should never be less than 5-6%...old school was interest rates 2.5-3% above inflation
Cheap interest has inflated everything ,nobody wants to just hold cash and has allowed people to spend more on a lot of "stuff" they cannot afford
Like a cheap lease....then the next lease is 2x
Land & housing prices would be at 2015 levels if interest rates had not crashed
We live in a pretty prosperous area and a good.local realtor says those low interest home mortgages are coming up for renewal and he sees 1/4-1/3 of the homes he sold 3 yrs. ago will be put up for resale or given back to banks. His comment was "not bad money managers, they just overbought and cannot afford payments that double on renewal" .... we shall see | |
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What does this mean going forward - reformed banker or others?