A Home Is Your Castle Against Rising…

Mortgage rates are up to 5%, and some fear a valuation bubble. Even so, it’s a good time to buy. By Laurence Kotlikoff Wall Street Journal, April 18, 2022 2:21 pm ET I published this op ed in the WSJ in April. Making it available to everyone per their permission. Clearly, the data cited in the column are out of date. Inflation over the past year ran at 8.6 percent — a forty-year high. It will likely stay high for quite a while. But 30-year mortgage rates are 5.58 percent as I type. If inflation stays high, you’ll be able to pay back much of a new mortgage in watered down dollars. Short-term real interest rates remain negative and medium and longer-term real interest rates are very low. Hence, interest rates, properly assessed, are not high. This is one of several reasons I don’t foresee a recession. But lots of people are now talking up that possibility and they may succeed in talking the economy into a downturn as I discussed

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