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If house prices drop because of interest rates affordability remains constant. They only become "more affordable" if you have money to buy without a mortgage.
by kypro 4y ago
If house prices drop because of interest rates affordability remains constant.
They only become "more affordable" if you have money to buy without a mortgage. So if you're saying they're more affordable to the rich, sure. But I assume you mean the average home buyer.
- juve1996 4y ago> If house prices drop because of interest rates affordability remains constant. This isn't a law of nature. It's highly possible housing value decrease outpaces rising rates.
- caeril 4y ago> So if you're saying they're more affordable to the rich, sure. No, cash buyers are in an even worse position right now. A traditional 60/40 portfolio is down substantially more right now than the average home price. Cash buyers don't sit on actual cash, they sell something in their portfolio prior to closing.