The OP stated price of the house was 6x, I'm pointing out the contrast in rates is the biggest driver of the change. Second, you're simply wrong. Yes, of cours

The OP stated price of the house was 6x, I'm pointing out the contrast in rates is the biggest driver of the change. Second, you're simply wrong. Yes, of course prices rise when rates drop (that was my original point), but not proportionately, and it absolutely does affect affordability. People flood the market when rates start to drop because they THINK that it's a great deal, and that pumps prices beyond what is proportional. It happened in 2004-7, it happened in 2013-19 (then shit got crazy for even more reasons). Further, the down payment required for an $800k house is a whole lot more than when that same house was $350k -- and people could build that down payment by earning 6, 7, 8% in a savings account. To top it off, the guy buying at 10% rates is likely going to be able to refinance at 7, or 5 or even less at some point during the 30 year life of the mortgage. What is the impact of refi when you start with a 2.75% mortgage? Higher RE prices also raise associated costs -- the transaction costs, RE taxes, overall debt ratios, etc.