High Mortgage Rates Trapping Homeowners in Place
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In 1981, the avg 30-year mortgage rate peaked at 18.6%!
Paul Volcker's Fed drove rates to historic highs to crush inflation. A $200K loan in 1981 cost over $3,100/month — vs. ~$1,400 today at 7.4%. Today's rates feel painful, but 1981 was far worse.
U.S. homeowners gained ~$13 trillion in equity since 2020!
Federal Reserve data shows total U.S. home equity surged from ~$19T in early 2020 to over $32T by 2023 — even as high mortgage rates leave millions unable to sell or move.
Topic poll · all networksWhat happens to home equity values if mortgage rates stay high?