What is the Real Mortgage Rate? At InflationData we are constantly talking about "real rates" typically by that we mean the inflation adjusted price. For instance we publish the inflation adjusted price of Oil, the inflation adjusted price of Gold, inflation adjusted stock prices and even the inflation adjusted cost of getting an education. But today when we are talking about Real Mortgage Rates we are not talking simply about the inflation adjusted price of a mortgage. To calculate the real cost of your mortgage you must also take the appreciation of your house into account.  So for example if your mortgage rate is 5% but your house appreciates 5% your real mortgage rate is zero.  The … [Read more...]