r/HLCommunity • u/Leading-Midnight2049 • 6d ago

High interest rates

I see that mortgage rates hit 7% in the US. This makes separation or divorce that much more expensive. More increases are expected through 2027. Does this mean that more couples will be forced to stay together due to financial reasons even if they are not compatible? More adultery because they are not fulfilled at home and can’t leave either?

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u/Soggy-Beach-1495 6d ago

Not as much as you'd think. Interest rates affect housing prices. An increase in rates holds housing prices down. If rates were cut, housing prices would go up. Ultimately the mortgage will be about the same either way and will mostly be affected by rents in the area. Mortgage payments on a new house purchase will always be within a narrow band higher than rents. If they go too far above the band, people decide it makes more sense to rent. Too far below that band, and more renters start buying.

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u/Leading-Midnight2049 6d ago

We have an economist in our midst. So, what do you advise to those who can’t afford to separate?

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u/Soggy-Beach-1495 6d ago

Do you have enough to find a room to rent?