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All perfectly valid points. May I ask what you mean by #1? Interest rates are historically low and a fixed mortgage will only change based on property taxes and

All perfectly valid points. May I ask what you mean by #1? Interest rates are historically low and a fixed mortgage will only change based on property taxes and insurance. #2 is something I thought about a lot as I was buying my first home, but I couldn't see how a drop in wage would change anything, since my mortgage is now less than what I paid in rent for just a modest apartment.

tmnvix 5y ago
Not OP, but as I see it, this is not so much about existing mortgages. New purchases will be funded by loans on terms with higher rates. Because most borrow close to the limit of what they can service, future purchases will be for less. If you and your neighbour both purchased for $1M a year ago and your neighbour sells theirs for $800K this year (because that is all any new purchaser can afford), then your house is also now valued at $800K.