re: April jobs number 175k, well below 240k estimates. Markets rally

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While the prospect of paying 7-8% on a home loan seems blasphemous to many. Odds are your parents happily refinanced to get that rate 30 years ago.

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The problem is that because mortgages were 2-3% for so long, prices inflated to the point that 7-8% for the average house now is a much higher % of your income than double that in the 70's and 80's.

There is just too much investment in housing for there to ever be a significant dip in home prices as well. Its most people's largest single investment... housing and other real estate is in everyone's 401k...

The rates not being high historically =/= that they aren't high considering the current economic climate.

But you're right on your main point about stagflation... we have a lot of doomers here.