Do you think an increase of 5 % int rate is possible
How many loans are for 5 yrs and then re-fi
History says says 5 % plus 2 % current rate = 7 % is not exceptional given past rates
What would anybody do if re-fi cost 7 %
Everybody is on the monthly payment schedule of family budget car, house, food, health insur etc
What expenses would decrease to allow an extra 9,000 increase in house payments
A house with 3 % on 300,000 is 9,000 increased payment over 12 months
Would most family budgets allow for 9,000 plus increase plus energy and other increased prices
You can't live on 30/hr unless two incomes which is more than most jobs pay
How long do you think the Fed can hold int rates at near zero???
What kind of a future do our 30-40 yr old folks look forward to
Zero rates for ever???
Great points Wayne.
Potential much higher inflation pressures seem to be overpowering here.
Been saying that the unavoidable one(because of fake green energy schemes) is causing the price of fossil fuels to soar higher, intentionally from some people that benefit.
This means that transportation cost for everything goes higher........and has to be dialed into the price we pay for it.
Input costs for producers is going thru the roof too.
Fertilizer is one of the huge ones! Some are concerned that there won't even be enough fertilizer for everybody next year and this will lower yields in 2022.
Another secret about fossil fuels: Haber Bosch process-fertilizers feeding the planet using natural gas-doubling food production/crop yields. September 2019
This hard to believe what inflation has done
If you bought a house 10 yrs ago, how much has the value gone up??
The same with farm land
Every farm you drive past if it has 100 acres, the owner is a millionaire
Farm land around here is worth a million or more per 100 acres
In fact many would not sell for 2 million
What would you do with the money
Cash loses value every yr
Stks can go down given recent up trends, will stks average out
The land is your income and cash is a loser
Thus unless retirement land is the better choice
Just blows my mind to drive down a road and realize how many farmers are millionaires
My 1st farm cost me 50,000 or 500/acre
No idea what some body would pay for it today