Feel bad for prospective buyers with the interest rates, so I found this equal parts funny and made me thankful I locked in 2.3% for a 20 year VA loan.
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Although these rates are higher than many have seen, and that many of us are used to, they’re still not too bad when compared to the rates during the late 70s and into the early 90s.
Let’s just hope they come back down and soon.
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Your right about that one, I think my parent’s paid 15% for their first and 18% for their second on the house I grew up in. I remember when I locked in my rate, I definately got the side eye, lol.
I’m on house #3 and I don’t think I’ve ever paid more that 3.8%
The problem with the interest rates in the teens argument is that houses were $70,000. Not $400,000. The high rates kept prices from skyrocketing. Now we have ridiculous prices and moderate rates we’re kind of screwed and no one can/wants to move… not good news for those of us reading this. Basically, the fact that our parents paid 15% is kind of an apples/oranges comparison.
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Good point, 70k then vs 400k today is apples to oranges, but when taking into consideration that a living annual wage back then is what we make in a month today, it at least gets closer to a apples to apples scenario.
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Remember it well, Kevin.
Late 1970’s to early 1980’s.
That was a time when my middle brother Richard & his wife purchased their first home. I helped him move. The whole family did.
Him and his wife, that worked as a head manger for a bank, both stopped smoking because the interest rates for mortgages was through the roof. Cigarettes’ were $1.00 a pack. Imagine that.
I heard of mortgages as high as 18% to 21%. Starter homes were 125,000.00 back then.
I looked on line. (21.75% in August 1981.)
Lots of Kraft macaroni and Hamburger Helper eating in those days.
They sold they home for over a $30,000.00 loss when transferred stateside ><2.5 years later.
Note: The company that he worked for gave him the $30,000.00 against his new homes mortgage in long island New York, a raise of $55,000.00 American. That brought him to $85,000.00 American. One new Mercedes, that turned into 2 the following year, and advanced his title to Vise President of operations over seeing 100 employees.
Wish I kept in touch more often over the years. Lovely family and loving grandfather. Mother died as she became a great grand mother. I whispered in her ear as she was dying, you are a great grandmother momma. She passed away the next morning at 04:28 AM. Even though you are here in your favorite chair until I bring you to your final resting place, Dam I miss you a lot…
You know what they say. Hindsight is 20/20.
Here is Mother in her favorite chair. Mother is on the right. The picture a memorial photograph to the opening of the Canadian new housing veterans development in 2020. Mother was highly recognised in the RCAF.
I am the luckiest man this way I feel. I get to say good morning and good night, and I love and miss you dearly every day.
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You need to figure in income as well, yes houses were cheaper but income was a quarter of what it is now. People get paid way more these days so if course housing prices go up as well. Will you work for $3.00 -$5.00 an hour and want to buy a $70,000 house at 15% interest?
So true. I enlisted into the Navy right out of highschool. When I got out I had an annual gross salary of about $9K as an E3. Basically minimum wage. My current net income just from my M-F hustle is about $6K a month, and that’s without overtime.
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