re: What Caused the Historically Low Interest Rates.?

2008 financial crisis

congress repeals glass steagall in the 90's. glass steagall was passed to separate investment banking and regular banking after great depressions.
bankers and mortgage groups conduct massive fraud (seriously) selling and packaging shite loans as mortgage backed securities.

read the link it explains the rest. the system nearly failed. bush bailed out the banks shifting the huge debt to taxpayer. fed lowered rates to zero and engaged in quantitative easing. Fed starting buying govt debt bonds. 20+ years of this shite is what caused massived deficits and now inflation.

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ut relatively muted inflation and growth expectations drive rates.

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This was my point too - demand was quite muted for about a decade. That all changed with the pandemic.

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with my banker

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Bravo to you for having a banker. Everyone should.

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Yes, but that huge 80s spike was the anomaly. 250 year 10 year UST average is 4.something. You can see post-911, we spent WAY more time below that average than in prior periods.

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I realize the 80s were abnormal, but the trend since then was about as well defined as a chart really gets. It didn’t break out of that trend in any meaningful way until late 2022.

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Aren't you a grown arse man? Why didn't you do your own research and buy a bigger house?

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I was being sarcastic. I was in my 20s, how much home buying experience, interest rate history, etc. do most have in their 20s?

Look, I'm not suggesting taking on a massive amount of debt is a good thing to suggest to your kids or family.

But, I don't think its a bad idea if real estate is an affordable purchase and long term loans at historically amazing rates are available to suggest it could be a good idea.

This is coming from people that purchased in the 80s and 90s with 8-18% rates.

It does seem like those born in the late 70s and sooner are more adept and change. You see fewer and fewer old hair styles, old clothing styles, etc. That can translate into business and banking also, sticking to what you grew up with. Maybe because change was slower and you stuck with what you knew?

It was very normal in the 90s and early 2000s to see people daily that look like they were stuck in the 70s and 80s.

It was a once in a lifetime combination of CRAP starting with the fiasco's in politics that LED to 2008. Then the TBTF and printing of money (~9T US debt at that time) from the US and the rest of the world. Since 2008, about 39 Trillion dollars were created out of thin air, devaluing the real monies in the world. Politics played a huge part, business with bad practices should have been left to die. There were plenty of people and companies that made MONEY on bad business practices and they should have failed, but TBTF was born. Based on the printed money, rates should have started to climb immediately in proportion to the monies printed, they didn't.

Nobody wanted to pay the piper, politics always gets in the way, then Covid and the super printer was turned on and all the programs that people took advantage of and waste / fraud / abuse occurred. Then JB approved even more stupid programs and the biggest killer of all is open borders that now NOBODY can put a dollar figure on in cost (programs, housing, medical, education, damage, etc). WE KEEP DOING IT AND REAL INFLATION KEEPS CLIMBING!

Anyone who thinks that rates are going down anytime soon UNLESS POLITICS DRIVES IT, is delusional.

You should hope to NEVER see rates like that again, because if you do it means we have put our selves in a worse situation than previously stated.

The have been historically low since 9/11