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Comment by WaxProlix | Hacker News Reader

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WaxProlix·

For things like mortgages, they're still historically low(ish). See the graph on this page for instance

https://www.bankrate.com/mortgages/historical-mortgage-rates...

so folks have been taking on debt at current rates, and substantially higher ones, for some time.

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Home prices in the '80s were ~$60,000; equivalent homes now are about 10x that [0]. With inflation bouncing around 2-6% on average [1], and only modest wage increases over decades [2], that makes the median home today way less affordable even with these relatively low interest rates.

[0]: https://fred.stlouisfed.org/series/MSPUS

[1]: https://tradingeconomics.com/united-states/inflation-cpi

[2]: https://fred.stlouisfed.org/series/CES0500000003

All 4 of my children, in various stages of degreedness, have told me they have no hope of ever owning a home of their own like they were able to grow up in.

I wonder if there is a metric tracking # of homes owned by <30 year olds compared to # of homes owned by <60 year olds.

Even at current interest rates, the prices are quite nuts.

Homeownership by age demographic has been surprisingly stable over the past 20 years.

https://www.census.gov/housing/hvs/data/charts/fig07.pdf

True, but home prices are also much higher than in the past partly thanks to that long period of low interest rates. Taking on these huge loans with corresponding (comparatively) high rates is a different ballgame than it was in the past.

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