As always, lucid and on point. I don't know how close we are to the economy being totally out of whack, but I do know we are closer than is safe and it's already a calamity for way too many good folks let alone those who volunteered to hang themselves. Thanks for flashing the warning, again.
This article is BS. If 81% of people have mortgage less than 6% they are NOT trapped. Their mortgage payments are not increasing. Mortgage payments only increase when people do stupid things like buying a house and assuming a mortgage more than they can afford. Inflation is a different story. Things do cost more but smart consumers find a way to compensate. FYI…. Don’t believe everything you read!!
Hey John — appreciate the passion, but I think you might be missing the point here.
You’re right that people with sub-6% mortgages aren’t seeing their payments rise. But that’s not the issue. The problem is mobility. With 81% of homeowners locked into those low rates, selling and buying again would mean doubling their mortgage costs, so they stay put.
That’s what’s “trapping” people — not higher payments, but being stuck in place. It’s also why supply is frozen and housing inventory is sitting at multi-decade lows, keeping prices high and affordability out of reach for everyone else. And that’s before you even factor in inflation. Did you read the whole thing?
This is why inflation is a government-induced problem: When things go REALLY awful, they have no other solution. Because if they had a real solution, they would have tried it before the iceberg is visible from the stern.
How can we print more money when we are 37 trillion dollars in debt? No wonder gold has gone so high...
As always, lucid and on point. I don't know how close we are to the economy being totally out of whack, but I do know we are closer than is safe and it's already a calamity for way too many good folks let alone those who volunteered to hang themselves. Thanks for flashing the warning, again.
This article is BS. If 81% of people have mortgage less than 6% they are NOT trapped. Their mortgage payments are not increasing. Mortgage payments only increase when people do stupid things like buying a house and assuming a mortgage more than they can afford. Inflation is a different story. Things do cost more but smart consumers find a way to compensate. FYI…. Don’t believe everything you read!!
Hey John — appreciate the passion, but I think you might be missing the point here.
You’re right that people with sub-6% mortgages aren’t seeing their payments rise. But that’s not the issue. The problem is mobility. With 81% of homeowners locked into those low rates, selling and buying again would mean doubling their mortgage costs, so they stay put.
That’s what’s “trapping” people — not higher payments, but being stuck in place. It’s also why supply is frozen and housing inventory is sitting at multi-decade lows, keeping prices high and affordability out of reach for everyone else. And that’s before you even factor in inflation. Did you read the whole thing?
Thank you. Good clarification.
This is why inflation is a government-induced problem: When things go REALLY awful, they have no other solution. Because if they had a real solution, they would have tried it before the iceberg is visible from the stern.
Exactly