That’s what I’m wondering about. I just recently refinanced my mortgage at 4.5% for 30 years. I was wondering what would happen to the financial industry if all of a sudden interest rates jumped to 10-15-20% per year...You would have a major crisis and uprising if the government allowed inflation indexing of mortgages like many other countries do (3rd world countries...that is). Growing up in Brazil during my childhood, I remember inflation rate exceeding savings rates....People purchased goods as soon as they received their paycheck...People threw their money at real estate, even cars for investments.
I had been looking at buying a smaller house, but the offer we made in Feb fell through. We have looked at building a house on a lot, but I was expecting in April to have until August to get a low interest rate. I hadn’t expected rates to go up this much in just 6 weeks.
We haven’t quite yet settled on a floor plan, so it may go up enough to put us out of the market...at the rate it is going, 7% or more by late July?