Moonstruck
Guru
- Joined
- Nov 27, 2008
- Messages
- 8,276
- Location
- USA
- Vessel Name
- Moonstruck
- Vessel Make
- Sabre 42 Hardtop Express
I am curious. Today we have almost historically low interest rates yet houses are not being bought in high volume. In 1981 the year averaged 17% mortgage rate. It went as high as 18.5%, yet we still sold houses. The economy wasn't booming, but there were corporate transfers that had to find homes. Today there is little of that. I just wonder why the buying mentality is to follow the herd. When the herd starts buying, costs and rates will go up.
In the early 1970's when inflation was high, and mortgage rates were about 10% people were buying because they were concerned about what prices could be in the future.
Right now it is the best of both worlds. Mortgage rates are low, and prices are relatively low. Just wonder why more are not buying.
In the early 1970's when inflation was high, and mortgage rates were about 10% people were buying because they were concerned about what prices could be in the future.
Right now it is the best of both worlds. Mortgage rates are low, and prices are relatively low. Just wonder why more are not buying.