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 cl

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.