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Not necessarily true: Interest rates and home prices both roses during the most recent period of rising rates (2016-2019): https://fred.stlouisfed.org/series/

• refurb 5y ago
  It's not guaranteed and in fact, what you'll likely see is continued home price growth as people pile in the "now or never" mentality as rates increase and mortgages are harder and harder to get a the historic low rates (see Canada). But in the long run, when mortgage rates go from 3% to 6% affordability goes down - people buy based on monthly payments, not the size of the loan. Of course if wages drastically increase, the affordability issue could be blunted. So yes, it's not a perfect correlation.
  • odonnellryan 5y ago
    Obviously it is not guaranteed bro. We only have history to base these assumptions on. The history backs the fact that housing prices will not go down - unless there is another major issue like the fraud during 2008, which seems unlikely but not impossible. Nothing is a guarantee. Silly to base your argument on that. Nothing is for certain.
    • refurb 5y ago
      Huh? Housing prices crashed several times before 2008. This is the same mentality of 2008. Wave your hands around and say "it's different this time". No, it's not. Housing is cyclical. It goes up, it goes down. It will go down, but but amazingly many will claim "I never saw it coming".
      • odonnellryan 5y ago
        Crashed? What do you consider a crash? Housing (at least in the US) never crashed if you're not adjusting for inflation. If you do adjust for inflation, housing was mostly flat. It is not hard to find this data.