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They're probably buying on credit, so their purchase price doesn't really change if rising interest rates are the cause of the price drop.

• recursivedoubts 5y ago
  Only if the rise in interest rates is offset by the price drop. With interest rates so low, that's almost certainly not the case: home prices will crater. End of the day, home cost matters and blackrock isn't stupid. They are paying a 20% premium over today's insane market. Think about that. They either expect hyperinflation and/or low rates forever or they are being told to buy the homes.
  • xapata 5y ago
    Another option is that Black rock believes the government, when push comes to shove, won't let housing prices fall dramatically, since a large portion of the electorate has nearly all their net worth tied up in their homes.
    • recursivedoubts 5y ago
      You are now arguing that Blackrock knows something we don't know. Which is fine, and I think there is a good chance that's true.
      • xapata 5y ago
        Knows vs believes. For an investor, belief with an estimation of confidence is sufficient. There's never really a "knows for sure" even with insider trading. For what it's worth, I'm of the same belief. I think it's politically infeasible to allow house prices to decrease significantly throughout the whole United States.