Seems like every day I read something about rising mortgage rates and how they will kill the housing market. But the other night Larry Kudlow, who I rarely agree with, was discussing rates and made a comment to his guest that's worth repeating. Over a graphic showing 30 year mortgage rates around 4 1/2% Larry said, as best I recall it, "Of course, you and I are old enough to know just how low rates are today."I'm sure I'm not the only one on this board who can appreciate the truth of that statement. 6% was a pretty common mortgage rate for a long time. When I bought my house late in 1975 the rate was 9%. I bought a smaller house but I bought a house, and the rate never got any lower after that until I paid it off in 1995. When I needed a second mortgage for a major remodel in 1986 the rate was 11%. Paid that off too. When I did another large project in 1999 the rate was 6.75%. That too is now paid off but I was able to make two loan modifications during it's term so the rate was lowered to 3.75% by the end. I was thrilled by this windfall but I never expected such low rates to last.My point is we've lived with much higher interest rates most of our lives. We might have bought smaller houses, but we bought houses. Our kids and grandkids need to learn that lesson. Maybe we can pass on some of our aged wisdom if they'll listen.
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