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.”Isn’t this the elephant in the room?I’m assuming that the cost of housing is the single largest outgoing for most people.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.So even if we have more savings and our investments are in good shape the actual value in real terms is actually declining rapidly.