It is the cost of the properties respective to the interest rates that is so objectionable

by Old-Fig5338 7 hours ago

This; our first mortgage in 1994 was over 7%. But the property prices were much lower (also compared to the median salaries).

by Anonymous 6 hours ago

The rate of a mortgage is dependent on the country you are in, your individual circumstances, deposit amount etc. Then the minimum rate any bank will offer will depend on the financial markets rates at the time and future predicted rates. So saying 5-6% rates are totally acceptable means you don't really understand all the variables. Sometimes the markets will mean they should be less and sometimes more. There is no small range of rates that you can say are definitively acceptable.

by Plus-Cut2114 6 hours ago

Exactly, laughs in 0.278%

by Flavio95 5 hours ago

I don't necessarily disagree, historically, but housing prices have gone up so much that the interest on these loans is insane. I was "lucky" to get 4.99% on my house purchase 3 years ago, but the purchase price was $615k. Over 30 years that ends up being more than $1.2 million dollars. This same house was appraised at $295k in 2019, and barely $200k when it was built in 2005. And you can say "buy a cheaper house you can afford", which isn't totally wrong, but even in the crappy old neighborhood I grew up in where my parent's were lucky to sell our house for $80k in 2009, prices are now $400k. Things are just unaffordable and made worse by the interest rates being higher, though you could definitely argue that the housing cost inflation was a result of the "cheap money" in the first place. And don't get me started on property taxes still being over 2% annually when house appraisals are this high.

by Anonymous 5 hours ago

That's kinda by design. I'd stuff keeps getting more and more expensive at a faster and faster rate (inflation), the economy falls apart. When it's too easy to buy stuff, the fed increases interest rates to make it harder. When it's too hard, decrease rates. They have to keep buying power in the sweet spot, which they seem to think we're mostly in right now.

by Jarrettfritsch 5 hours ago

If you want to say higher mortgage interest rates are good because in theory they can control prices provided other conditions are met, fine. But Wells Fargo, Bank of America, whoever, isn't automatically making more money because the more the greatest 3 percent or 5 percent or 30 percent. If they're selling it on the secondary market, the premium for which they sell it may look very similar no matter the interest rate. If they're holding their own paper, that means that sure, they're charging a high interest rate, but you're also paying out higher interest rates on their own deposits.

by Anonymous 4 hours ago

How does one hire a mortgage rate?

by Jeremyfarrell 4 hours ago

Right, because bankers and lenders are so shortchanged right now.

by Sad-Training 4 hours ago

They used to be even higher when we bought our house over 30 years ago. But the housing market is much more than just mortgage rates. A 7% mortgage on a €60k house in 1994 (ƒ converted into €) is not the same as a 3% mortgage on a €650k house in 2025 (which is what ours is approximately worth right now).

by Anonymous 3 hours ago

You are aware that banks do not "invest" anything? If you get a mortgage, the money is created for this particular mortgage by the central bank, then destroyed again when you pay it back. The interest rates have nothing to do with the banks needing to make money, they create money out of nowhere when you take a loan and charge interest on thin air.

by bernice39 3 hours ago

I don't think you understand even the basics of the monetary system.

by Jeremyfarrell 3 hours ago