Here's something I had mercifully forgotten about--how high interest rates on homes once were. Just ran across a 1982 ad for a home in Coldwater Canyon. $439,000. Charming little two-story on a private road, so the price didn't seem too bad. Then this: "Financing includes an assumable $44,000 note and first trust deed with Bank of America at an annual variable interest rate of 12-1/4 %..."
Yikes! A year later, according to HSH Financial Publishers, an adjustable danced around that figure, sometimes higher, sometimes lower--but a fixed, 30-year mortgage carried an interest rate of up to 13.95%. The peak seems to have been July 1984, when a 30-year mortgage went out at 14.75%.
The RE market had crashed in 1982, btw. But still--14.75%? Interests rates are scary...boo!