RE:Normal interest rates are around 5% historically Most don't realize that close to zero interest rates was highly anomalous. It was a strange world indeed where one earned less on fixed investments like bonds and GICs than the rate at which those very same earnings were eroding due to inflation.
For Heaven's sake, we had negative interest on trillions of dollars worth of government debt, and even Denmark began giving out mortgages with negative rates. Very few saw the lunacy behind those conditions and a segment of the population actually began to see it as normal.
EdPaquette wrote: Bought my first house in 1981 with 21% interest. That was because of all the baby boomers all wanted houses at the same time. Lately we went down to zero, and now I expect 5% long term. Be ready.