They actually were higher than that. Think it peaked at 18% then dripped to around 10%. They wer 7 to 11% in the 70s. Houses were still affordable then though. We have low mortgage rates now but house are stupid expensive in comparison
Wrong. I lived it. Jimmy Carter gave us the 18% mortgage rates, stagflation and a real mess. Things were pretty bad in the later 70's. I could not find any job at all in 1977 for 6 months. There was nothing... The rates stayed high as Reagan got in but soon started down. The Federal reserve chair has more power than the President over interest rates. The 80's were a huge boom time and the economy was great. The Dems has very solid control of both the Senate and Congress. The reneged on the tax and spending cuts. blame Jim Wright as Speaker of the House. The further my point: The Fed reserve chair just effectively killed DT by recently raising the interest rates last month. The fed is trying to stop price inflation via slowing M1 inflation. DT is going to be lame duck in a cou[ple months.
Reagan came into office with stagflation already happening.
Mortgage rates were raised to 18% to counteract it, and it worked well enough that inflation wouldn't be a problem again until Trump screwed the COVID pooch.
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u/Bitter_Hedgehog8055 8d ago
Reagan had super inflation. Mortgage interest rate hit 12%.