Interest Rates

[Dean Hoffman]

A couple charts on interest rates.

Houses are getting cheaper in some places.

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Heard a home builder talk about this and there is still a shortage of housing. If he builds a house he puts a clause in the contract that allows him to pass on the cost of building materials to the buyer.

When I bought this house I had to go from a 6 to a 9% mortgage. After that the interest rate climbed to about 17% in the 80's.

I was lucky as I paid over 50% down payment with a twenty year mortgage that I paid off early.

[Ralph Mowery]

They cry about 4 % now. Around 1976 when I bought a house the going rate was 8 % and went up much more in a few years.

By the same token, savings and CDs were 5 % and were going up. Now if you get over 1 % you are lucky.