🇺🇸 BlackRock is calling 7% a “generational” opportunity. For American homebuyers, it’s just their mortgage rate.
The world's biggest asset manager is celebrating the chance to earn around 7% from high-quality bond portfolios, a level of income investors haven't seen much of in years.
Meanwhile, the average 30-year U.S. mortgage sits at 7.32%, and the median home costs $417,500 after 39 STRAIGHT months of year-over-year price increases.
Now here's where it gets painful: put 20% down on that house, and you're paying roughly $2,300 a month. Over 30 years, you'll hand over nearly HALF A MILLION DOLLARS in interest alone.
That's more than the house itself costs!
At 2021's roughly 3% mortgage rates, the exact same loan would've cost you almost $900 LESS every month.
Same 7% neighborhood. Wildly different experiences depending on which side of the payment you're on.
Sources: Bloomberg, NYT, Freddie Mac, NAR / Writer: Julie
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