Historical Interest Rates
OK...obviously prime rate isn't a mortgage rate but we have all read Ardells statements regarding historically high interest rates and the fact that houses were still selling.
Between May 1977 and April 1980 (less than 3 years) the Prime Rate went from 6.5 to a peak of 20% as can be seen on this table....
http://mortgage-x.com/general/indexes/prime.asp
Mortgage rates according to this graph & table went from somewhere around 8.83% with 1.1 points to 16.32% with 1.9 points during the same period as can be seen on this table...
http://www.freddiemac.com/pmms/pmms30.htm
The question I'd like to ask is...
What if?
No point in arguing that "they went down after that 16.32% peak" as I would expect some of our resident bulls because as you can see...they came right back up...even reaching higher rates with more points.
Between May 1977 and April 1980 (less than 3 years) the Prime Rate went from 6.5 to a peak of 20% as can be seen on this table....
http://mortgage-x.com/general/indexes/prime.asp
Mortgage rates according to this graph & table went from somewhere around 8.83% with 1.1 points to 16.32% with 1.9 points during the same period as can be seen on this table...
http://www.freddiemac.com/pmms/pmms30.htm
The question I'd like to ask is...
What if?
No point in arguing that "they went down after that 16.32% peak" as I would expect some of our resident bulls because as you can see...they came right back up...even reaching higher rates with more points.
Comments
Bueller? Bueller?
I've asked Ardell, but I think Synthetik's dog would be better equiped to handle a question of that complexity.
How is Ardell? I don't get over to RCG much anymore. Not that I am missed...
I think there is an informal poll of when Ardell is chomping Top Ramen. I think I have the July 09 contract.
Good luck to us all..