Wed, 12 August 2020
Jason Hartman pulls out the Hp12c Platinum Financial Calculator for a field trip down inflation lane. This trip was spawned by the gift from Jerome Powell, chair of the Federal Reserve. Today, Jason shares how the current mortgage interest rates can benefit you, especially when compared to interest rates from 2006. How can we calculate benefits of mortgage rates, how do we factor in inflation, and should we consider hedonic indexing?
[1:00] A gift from Jerome Powell:
[6:45] Jason explains how the change in mortgage interest rates from 2006 to 2020 means you can get 70% more house./mortgage for the same monthly cost.
[12:20] Selling property, flashback to Jason’s Irvine, CA “farm area.”
[19:15] Sharing problems with calculating hedonic indexing.
[23:00] A newsletter called the Lumber Market Report said that framing lumber prices climbed further into record territory.