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olioli86 t1_irgi4vz wrote

The effect in the early percentages is staggering really, shows how much difference a percent or two makes at that point.

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hmiamid OP t1_irgifq7 wrote

Yep. Warren Buffet said interest rate is like gravity. It brings price to a more "down to earth" value. Low interest rates makes prices "float" too high.

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IronGravyBoat t1_iris8w5 wrote

I like to think about it like this, if the initial offer was 4% and it's lowered to 3% that's 25% off the original rate. That's like goint from 20% to 15%

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