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It does affect people who already bought a home, because when interest rate changes, home price will change too. It's not a problem when equity increases, but i
by xuki 5y ago
It does affect people who already bought a home, because when interest rate changes, home price will change too. It's not a problem when equity increases, but in the other direction it could be.
- pavlov 5y agoI think that's related to another somewhat unique feature of the American housing market: home equity loans seem to be quite popular. (I.e. loaning money against the paid-off equity in your primary residence. That's a financial product that I've never even heard of in my home country.) If you're on a fixed-interest mortgage, you don't plan to move and you don't have a home equity loan, it seems to me that you don't need to care at all about interest rate and home price fluctuations.