Hey guys,
I'm no macro economist, but shouldn't the opportunity cost of borrowing in a low rate environment be the same as a high rate environment? That is, if inflation does correspond to market cycles, which I'm guessing aren't tied at the hip.
Granted, a mortgage is 30 years, and market cycles are much shorter than that, so I definitely see the appeal of locking in a cheap mortgage now....when the inflation pendulum swings hard the other way, I will be quite off-put to buy a house at over double the rates my peers are locking in now. I suspect so will a lot of people, and it will hurt house prices, maybe enough to compensate for the crappy loan rate I'll be offered.
Am I sounding like a
? These supposedly low housing prices AND low rates just doesn't make supply and demand sense... When one goes up the other should come down, no?