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That only works if rates go down. Most people won’t sell a house worth N financed at 2.5% to buy a new house worth N at 6%. California’s prop 13 was found to h
by bushbaba 4y ago
That only works if rates go down. Most people won’t sell a house worth N financed at 2.5% to buy a new house worth N at 6%.
California’s prop 13 was found to have this effect. So too will the prior low mortgage interest rates.
- nilsbunger 4y agoThat doesn't seem quite right. If you're moving up, your decision to buy will primarily be based on affordability, even if the old house had a better interest rate. And in a high-interest environment, house prices become lower and partially offset the extra interest expense, so affordability hasn't changed all that much. Prop 13 has a big effect but more so in downsizing (eg empty nest / retirement) than in upsizing.