the mortage mess is really the housing price mess

[MikeWaters]

How did we get to the point where cities have median prices near a half-million dollars for homes?

Did we think this was sustainable? (yes)

Crazy, crazy, crazy.

[Indy Coug]

Some very crude numbers how much additional home you could get for the same price, but at a lower interest rate.


Int Rate $2000/mth P&I % Increase
8% $274,384.10 0.00%
7% $302,368.72 10.20%
6% $335,251.14 22.18%
5% $374,115.58 36.35%
4% $420,318.89 53.19%


Yes, it was an unbelievable systemic failure.

[MikeWaters]

your further display or moronic-ness is entertaining.

I see you dancing in the streets with a parasol within two years.

[Indy Coug]

your further display or moronic-ness is entertaining.

I see you dancing in the streets with a parasol within two years.

So you're saying that the large drop in interest rates had no major impact on the price of real estate?

I didn't claim this was the only reason.