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I think the rationale is: You don't want to be holding an asset who's value is predicated on a very low interest rate loan. If mortgage interest rates go up by

I think the rationale is: You don't want to be holding an asset who's value is predicated on a very low interest rate loan. If mortgage interest rates go up by a factor of two, housing affordability will come down by a factor of two (assuming an interest only loan). Better to sell now, pocket the money, then buy back in when prices are lower.

shostack 10y ago
Isn't that in essence trying to time the market?
- jonknee 10y ago
  On the other hand it is buying low and selling high. It's a fool's errand to try and sell at the exact top (or buy at the exact bottom), but if you're already up nicely you have done the hard part.
  - shostack 10y ago
    Sure, but you're still trying to time the market.
    - hiram112 10y ago
      Yes you are trying to time the market but interest rates cannot go any lower, literally. In hindsight, it will have looked obvious.
      - shostack 10y ago
        Actually, they can go negative like Japan. Which I guess would push asset prices even higher?