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Ben Carlson's economics blog has a post on what happened to housing prices in the past during periods of rising interest rates: https://awealthofcommonsense.com
by rufus_foreman 5y ago
Ben Carlson's economics blog has a post on what happened to housing prices in the past during periods of rising interest rates: https://awealthofcommonsense.com/2022/01/will-higher-mortgage-rates-derail-the-housing-market/ https://awealthofcommonsense.com/2022/01/will-higher-mortgag....
Short answer, home prices go up:
"In fact, every prolonged rising rate environment I could find over the past 50 years saw housing prices grow when mortgage rates went up".
From his chart, when mortgage rates went from 3.6% to 5% from 2015 to 2018, house prices rose 22.4%.
So, what do you think is going to happen to home prices when interest rates go up to 5%?