We bought our first home in late 2007.
Housing prices were obviously a lot lower back then as well (and going even lower for a few more years after that).
We lived in that house for 10 years until we outgrew it (twins will do that).
Housing prices eventually recovered and we were able to refinance a couple of times after rates fell following the Great Financial Crisis.
We’ve paid down the mortgage as well.
Two-thirds of those with mortgage debt are at 4% or lower.
Fiscal stimulus played a large role.
Plus we’ve seen home equity rise by more than 50% since just before the pandemic started.
We have a period of low mortgage rates, wage gains, a massive rise in housing prices, a surge in rents and the highest inflation in four decades.
I just can’t stop thinking lately that we might be underestimating the impact of ultra-low mortgage rates that occurred during the pandemic as a force that could impact household finances for years to come.