Is The Current Real Interest Rate For Purchase Money Mortgages Negative?

[Bryan Hancock]

The 30-year for the best borrowers is currently around 3.25% and Shadowstats.com says the inflation rate is currently around 6%. Do you really believe the real interest rate for purchase money is highly negative? What is your experience in the market currently?

Assuming the rate really is this negative shouldn't people be taking on as much debt as they can safely service?

[J Scott]

Regardless of the rate of inflation, anyone with even a moderate ability to invest funds safely should be taking as much advantage of the low interest rates as reasonable.

It's pretty easy to generate 10% returns in real estate these days (if you have even a reasonable amount of knowledge and experience), so I can't imagine not borrowing as much as possible while rates re under 7%, even for investing funds.

So, in short, yes!