If interest rates go up and that causes housing prices to drop, the same monthly payment can now only purchase a lower-cost house. People might not be able to s

If interest rates go up and that causes housing prices to drop, the same monthly payment can now only purchase a lower-cost house. People might not be able to sell for what they paid. Then if they need to move they must bring cash to the table. Even those that can afford to bring cash might still decide to go the foreclosure route. In 2008 we even saw people pro-actively defaulting because they didn't want to make payments on something that was worth half of what they paid. I'm not predicting any of this, but it is a possibility.