> You sell your existing house, which has benefited from inflation Your new interest rate is going to absolutely demolish any inflation benefit your current ho

> You sell your existing house, which has benefited from inflation Your new interest rate is going to absolutely demolish any inflation benefit your current house has. I don't think people really understand how bad higher interest rates are when there's a housing shortage. - A $500k house at 3% is $2,100/month. - A $500k house at 7.5% is $3,500/month - That's a difference of nearly $17,000/year The house that was $500k at 3% in 2021 is still $500k at 7.5% in 2023. Housing prices haven't budged. We'd need to see a 20-40% reduction in prices across the board to stabilize affordability, but that won't happen because there's too much demand.