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My rent doesn't change with interest rates.


That's true, rent keeps going up?

A fixed loan doesn't change with interest rates either.


Rent increases are a cause of inflation (as part of the basket of goods that defines inflation), which in turn causes interest rate increases, which then cause home price decreases.

Homes are like fixed-income securities. When interest rates go up, the value of existing securities goes down.


Daily no. But higher interest rates and high inflation absolutely leads to higher rents each year when your lease renews (unless of course your in some rent controlled environment).


So does my mortgage that is why it is called 15 year FIXED.


Yes, as I said, you care about the monthly payment, not the lump sum price of the house.


No, but in 20 years you’ll be paying rent with expensive 2041 dollars while the 30 year fixed rate mortgage is still being paid in cheap 2021 dollars.


Yes, but it turns out I came out ahead from 1990-2021 by having all my investments in the stock market instead of housing.




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