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tl;dr: Houses are so expensive that people can't afford a down payment, so banks let people buy houses for no money down, driving up the purchase price of house
by random28345 10y ago
tl;dr: Houses are so expensive that people can't afford a down payment, so banks let people buy houses for no money down, driving up the purchase price of houses.
- refurb 10y agoThis is a great point to reinforce. Low interest rates are a HUGE driver of housing prices. No one knows what interest rates will do, but if they go from 3% to 6% (historical average), then suddenly everyone can't afford as much house and prices decline.