I need to buy a house and prices are so flipping high I can’t believe it. Maybe I’m getting old and my brain hasn’t kept up with inflation. Interest rates right now for a 30 year loan are 2.6%! I’m sure some people are happy about that, but I think that’s part of the reason prices continue to go up. It helps the builder, the seller, but does it really help the buyer? If the market dips down again the buyer still actually owns the house at the high price, and if they need to move they lose.

I understand some of it is supply and demand, but also being able to afford the payment is a big influence.

Articles on the real estate market keep saying it’s not like 12 years ago, but there have been other times in history where real estate markets go down temporarily.

Why are interest rates so low, and do you think it’s a good thing? Do you think they will go back up sometime soon?

Topics: real estate, inflation, interest rates, houses, deflation