re: .

quote:

---

Current mortgage rates are pretty average historically. We've just had 14 years of artificially low rates. Prices are still inflated quite a bit though.

---

10% on a $350k house is not sustainable for most people.

We sold our first home 3 years ago for $150k. That’s $5k more than I paid for it in 09. My wife found out the people listed it last summer and sold it for $255k.

This is a 1350sf spec house. When we originally bought it I got 4.5% and had refid to 3.5%. My mortgage with pmi was right at $1000/month. It was our first home, we had no money. On an entry level salary, that was a huge expense.

At $250k @ 8%, that note with pmi has to be close to $1800/month right? I mean someone making $85k/yr is $1600/m before taxes, and that’s a lot more than I made when I graduated 20 years ago. How are people affording this?

I got 2.6% on my current home and got in before prices just got stupid. My kids might not see that interest rate in their lifetimes.