Good ideas and conversation. No ads, no tracking. Login or Take a Tour!
I'm genuinely curious what rising interest rates will do to home prices. People always max out their monthly expenditures, and seem to care very little about the actual price of the house. I have a decent equity cushion, so I'm not really worried about it, but look at the difference just a point makes. As an example, borrowing $300k at 4.5% gets you a very similar payment to borrowing $270k at 5.5%. That's a ten percent difference in borrowing power to a perspective buyer. That is doubtlessly going to affect sale prices, even if the brewing bubble doesn't pop as dramatically as in '08. I'm wondering if that will play into the rate at which the Fed increases their benchmarks (even though they're not directly related to mortgage rates).