Then and Now
An Amazing True Comparison
Amazingly, you can purchase a median priced home today for a payment that can be lower than it was for the same home over 30 years ago. This is all the more amazing when we consider that with inflation, that payment is a much smaller percentage of average income than it was back then.
This won’t last forever – Interest rates are historically low and once the economy improves or the Fed takes its proverbial foot off the gas pedal, mortgage rates will rise once again. As you can see above, high rates back in the 80’s made housing much less affordable than it is today. While we will not likely see a return to those lofty levels, even small increases in rates can make for big changes in what you can qualify for today.
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