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That’s the point. Home prices are too high due to raised interest rates. They will come down to match the interest rates.
by konschubert 4y ago
That’s the point. Home prices are too high due to raised interest rates. They will come down to match the interest rates.
- michaelmrose 4y agoRaising the interest rates makes homes more expensive over the lifetime of the loan inclusive of interest. It does not however increase the principal cost of the home in fact it has the reverse effect.
- km3r 4y agoPeople often budget the size of their loan based on the monthly payments. When interest rates go up, payments go up, size of loan goes down. Smaller size loan effectively lowers demand. Lower demand, home prices fall (or just rise slower).
- konschubert 4y agoI think we’re all saying the same thing.
- dadoge 4y agoMore likely is they will grow more slowly rather than anything Don’t expect anything near pre-covid prices anytime soon for the principal