554
Me_irl
(lemmy.today)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 06 Jun 2026
554 points (100.0% liked)
me_irl
7959 readers
1811 users here now
All posts need to have the same title: me_irl it is allowed to use an emoji instead of the underscore _
founded 3 years ago
MODERATORS
The usa is not an exception when rates hit 12%. And they were not a long time ago. Quantitative easing made money cheap after the 2008 crash, but that's over, and cheap money is no more. So eventually rates might rise and cost per house (in inflation corrected numbers) will lower.
It's basic math.
Sure, maybe they'll hiver at 3-4-5% for 2 decades, what do I know, but that was not the discussion.
You are still assuming that rates will increase to that level.
Look at this. Interest rates haven't been as high as 12% since roughly 1987. That's more than 2 decades, and it's been almost 2 decades since 2008, where rates were already falling before the housing market crash. 2008 saw some of the lowest housing costs of the 21st century so far because of the amount of foreclosures. And yet, look at that, interest rates were around 6-7% and dropped to about 5%. Of note, the historical average is 7.70%, not the 12% you insist upon going back to.
Neither one of us know what the future holds, but taking modern economics into account shows that rates are unlikely to get high enough to have that make a meaningful difference.
Housing in the 70's and 80's wasn't cheap because of the interest rates. It was cheap because housing was rapidly expanding into suburbs, a suburbification. This is why rates could actually be that high, because the loans were comparatively smaller. You are confusing correlation and causation.
Look at this one:
Housing costs at 12% were not meaningfully cheaper. They were still slowly rising.
I do not assume that. sigh.
What I said was that if rates go up a lot, prices go down.
Edit: correct the second for inflation.
They will not go up enough to make your claim valid, full stop. It has never happened in the way you've been claiming, so you can't even point to the historical data to back yourself up, it seems.
Inflation is not something that needs to be included in this, and it only hurts your case further. Your original claim is that if interest rates go up (now you're saying "a lot", but it doesn't change anything), home prices go down.
Well, in the 80's, interest rates went way up, but housing prices didn't go down, even in the short time period where inflation isn't going to meaningfully be a factor. It went up at the a slow rate. So, you're grasping at straws now ("correct the second for inflation" even though it didn't magically make the housing prices go down in any way that matters) seemingly because you didn't understand basic econmics in the real world and dug yourself too deep.
Are you going to provide any sources for your bold claim? Any amount of data? Anything? Or are you just going to keep talking in circles and not providing anything of substance?
Lol, basic economics 101, supply and demand is not enough? It happened in Sweden, it happened in France, guess usa is magic after all.
The US isn't magic, it's corrupt and unregulated. Supply and demand only applies in your freshman econmics class, not here, as you can very clearly see on the data I provided. You have provided nothing, not anything, to back yourself up. How embarrassing.
Lol whatever, one day you'll figure it out!
Lmao, nice, still not providing anything to back up your claims huh? It would have been less embarrassing for you to just admit that you have no idea how economics work past supply and demand, and yet, here we are!
I have already figured it out, and that's why I bought a home at 3.2% interest.
You still haven't figured out I'm not saying you should take a mortgage at 12% today?
๐๐คฃ๐๐คฃ You must be trolling!
Anyways good for you, but it was not the point, whatever ๐คช๐คท๐ผโโ๏ธ
Keep moving the goalposts, sure. The claim of yours that is entirely incorrect is that high interest rates bring down home prices. They have never done that in the US.
The emoji spam is a sign that you have completely lost the plot. Add it to the embarrassment pile.