Our intereste rate is suppose to be very low but the average debt a american is holding now is the highest it has ever been..you think we can handle 12% mortgage rate now?
2006-11-20 08:18:27 · 3 answers · asked by miller4000 2 in Arts & Humanities ➔ History
Yes, both are true. Interest rates are historically low -- back in 2003/04 we saw the lowest rates recorded since the 1960's. The prime rate right now, after a series of increases, is 8.25%, which is still lower than the 1990's average, and probably half of the average rate for the 1980's. At the same time, Americans also have more debt than ever before, due in part to a wider range of available debt products (credit cards, student loans, nonstandard mortgages, etc.).
Still, no one should have a 12% mortgage right now. Even 1/1 ARM's are under 8% on average. 30-year fixed mortgages, the type that most people take out to buy their primary home, are just under 6%.
2006-11-20 08:46:14 · answer #1 · answered by Christopher C 2 · 0⤊ 0⤋
there is yet another area to the argument. Low expenses of activity on loans additionally skill low activity on mark downs. Retirement bills at the instant are not conserving up with inflation, and are occurring in fee continuously, regardless of persevered investment. on a similar time as the government borrows greater funds to artificially prop up a stagnant economic equipment, the money we've keeps to chop back in fee on a similar time as expenses bypass up. the government answer incorporates a extreme cost ticket.
2016-10-22 10:43:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Low interest is why we have a record debt. Not to worry about 12% amr. Banks control interest and it is in their interest to keep us in debt. But if you sell out because of high interest, that's bad for business. So, it won't happen.
2006-11-20 08:30:38 · answer #3 · answered by Sophist 7 · 0⤊ 1⤋