Folks who have 250k sitting on their savings in the multiple places, and which can be translated as it is paying off their 50% or more for their monthly mortgage payments. This is insane
That is a very good point. With the Fed jacking up rates, the stock market plummeting may be obliterating everyone's lifetimes of savings, their critical retirement savings, 401Ks, pensions, and IRAs, but if you mortgaged your house when rates were low, and you've got big savings, you could essentially be getting a free house now. However, I imagine relatively few people are able to save that much money, and even fewer now that people are running up credit card debt just for essentials.
The more I think about it, the more I agree. It is insane. Imagine being wealthy enough to get a multi-million dollar house for near zero rate mortgage. What did they get down to? Less than 3% right? So now even an Apple Savings account is paying over 4% or an I-Bond is paying 6.89%. So if you're at that level of wealth, you have a sure thing, no risk, no reason to invest in businesses, just spread those savings around using whatever loopholes you need to jump through, but get a guaranteed high yield that covers your mortgage, taxes, plus get a slight return on top of all. For the fortunate who got the timing right, it essentially translates to free multi-million dollar homes, vacation lodges, beach condos, AirBNBs, rental or other investment properties.
That is fun to imagine! Let me go check how close I am to that dream, how much interest I earned... $0.08. Well on my way. Woot!