I bought my first house in 1978, almost the peak year of inflation. I had to take out an adjustable mortgage which was adjusted once a year. It was some amount over the Fed’s Fifth District “Cost of Funds Index.” Fortunately, the rates started coming down soon after I took out the mortgage. We bought two houses after that — one with a 30 year fixed mortgage and one with cash. We are still paying the mortgage on that first place, but if things really turn to crap, we can dump it...unless Vlad incinerates all of us.
I kept the nerve-racking adjustable loan for five years and was very glad to finally be done with it.
“I remember the 1970s and 1980s and trying to buy a house in that environment.”
I actually bought a home in that environment. 1980.
I remember the Gasoline lines of 73-74, 78-79.
We survived.
The big difference today, is Politics and the overpowering
control of the government by a single party.
I don’t want to cooperate with a government that is
trying to destroy me.
When you alienate a significant part of your productive population, the USA has a big problem.
GDP is not government spending and service industries,
it is Joules and mass, eg, Energy and goods.
Better prepare because it will only get worse.
Bought our 1st house 1970 with 8% interest which we were delighted to get. But by 1983 our sliding mortgage rate was 13%. Crazy.