REMINDER: The highest mortgage interest rate in the USA was recorded in October 1981, when the average 30-year fixed mortgage rate reached a staggering 18.63%. This period marked a significant economic challenge, characterized by high inflation and a tight monetary policy, leading to such unprecedented high rates.
And savings accounts paid as much as 8% in the early 80s.
Keep this in mind when thinking that HBD Savings paying 20% is unsustainable. If the USA goes into financial crisis, HBD may need to pay as much as 30% to stay meaningfully above inflation. Being at or below inflation would cause everybody to dump HBD.