... almost finally ... A note for baby boomers

Wednesday 30 May 2018

Here in New Zealand young people alarmed at the outrageous cost of housing sometimes accuse baby boomers of having had it all too easy and being part of the problem and the increased demand driving prices to record levels.

Looking at the chart below is quite sobering as baby boomers, especially those who borrowed to buy the family home during the 1980's (ie - probably half of the boomer population) have lived and borrowed through the highest recorded levels of mortgage interest rates.

Yes, the graph is about 10-year Treasury yields in the US but there is a strong correlation to retail mortgage rates.

Click the image to enlarge

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