Comments by "LRRPFco52" (@LRRPFco52) on "Much Higher Interest Rates for Much, Much Longer || Peter Zeihan" video.

@sadjaxx That would have been around 1980 or 1982-1984. Median home price was $62,000 in 1982 ($202,000 CPI adjusted for inflation today). Median home price for Q1 2024 is $420,800. That's 207% more than in the early 1980s. Base price is killing new potential buyers and forcing them into perma-renter status.
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@eddiegill It wasn’t interest rates from my perspective. It was Congressional mandates to lenders that they sign mortgages with high-risk borrowers (people without bank accounts, inconsistent employment, in and out of jail, low income). Finance sector built in protections for themselves with adjustable rate mortgages with low entry %, then bundled and sold those off to other banks. When it all crashed in 2008, builders left the market and created a huge inventory gap that we never recovered from. As millennials matured into home-buying, supply just wasn’t there so prices inflated like we’ve never seen in real estate. Small interest rate bumps have pushed buyers out from qualifying when combined with the insane home prices, even though rates are still historically-low.
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