10/17/2018
I got 5 on it. Folks, home loan rates hit 5% last week from under 4% a year ago. While that’s another $600 on a $1 million mortgage payment, it’s still 5% compared to 6% car loans or 17% credit cards, or the 18% mortgages in the 1980’s. Rates were so high before. Falling to nearly 3% in recent years. There’s no optimal number but I’d say we’re closer, maybe rising to 6% in the next several years but not much more. Coincidentally home prices are on pause not really from from rising mortgage rates but just taking a breather after rising 53% since 2012 troughs to above previous 2006 peaks, giving buyers a fair chance for their paychecks to catch up. Home prices rose 6% year over year while wages rose under 3%.
