In the intricate dance of consumer finance, interest rates wield significant influence, steering individuals towards major purchases and, some argue, artificially inflating prices. The irony is stark as once-prosperous real estate magnates, who rode the wave of low interest rates to success, now witness a transformed landscape.
“I sold cars in college,” recounts a seasoned trainer, emphasizing the sway of interest rates. “People only care about the monthly payment. Crack that, and they’ll buy the car.” This principle extends beyond cars to any item that can be financed.
In May 2021, mortgage rates stood at a modest 3%, and the average monthly home payment was $5,400. Today, that figure has surged to $8,100. The pressing question emerges: Is this a genuine 35% increase in real wages, or are prices artificially inflated?
Rising interest rates exert a palpable impact, turning what was once affordable into a financial challenge. The allure of homeownership and the thrill of a new car now come with inflated price tags, leading consumers to question whether their choices are genuinely theirs or manipulated by the interest rate puppeteer.
As interest rates continue to pull the strings, consumers find themselves at a crossroads. Are increased wages real, or are dreams being propped up by artificially inflated numbers? The interest rate rollercoaster takes center stage, not just guiding choices but also contributing to the inflationary spiral that leaves wallets lighter.
In this unfolding drama of consumer finance, the once-humorous anecdotes of billionaires and their real estate empires now give way to a serious concern. The cost of living, influenced and inflated by interest rates, prompts a reevaluation of whether the decisions we make are truly our own or orchestrated by economic forces beyond our control.
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I sold cars in college. First day, the trainer tells me, "no one gives a sh what their car costs. People only care about monthly payment. Find a way to get to their monthly payment and they'll buy the car." Anything that can't be financed is the same thing.
— Mark Miller (@MmarkMmiller) February 12, 2024
Here's the problem, in May 2021, mortgage rates were 3%. Assuming a median down payment, $5,400/mo
NOW that payment is $8,100/mo
So have REAL wages increased by 35% or is it 35% over priced? t.co/shczuU0DRc
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) February 12, 2024
The United States is a Kleptocracy pic.twitter.com/hUU21YlOdc
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) February 12, 2024
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