Two Worlds: So Much Prosperity, So Much Skepticism
“A $500,000 mortgage now has the same monthly payment that a $300,000 mortgage would have with 2007’s interest rates, and what a $210,000 mortgage had at mid-1990s interest rates.”<p>Isn’t this the elephant in the room?<p>I’m assuming that the cost of housing is the single largest outgoing for most people.<p>The low cost of debt (mortgage repayments) seems to continue to push the dollar value of homes exponentially higher so in real terms dollars are exponentially loosing value.<p>So even if we have more savings and our investments are in good shape the actual value in real terms is actually declining rapidly.