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Regarding your last point, wouldn't higher interest make housing a less attractive investment since now you need housing to beat the higher returns from bonds?
by thmsths 3y ago
Regarding your last point, wouldn't higher interest make housing a less attractive investment since now you need housing to beat the higher returns from bonds?
- toomuchtodo 3y agoYes. The higher the risk free rate goes, the more compelling the return potential must be to attract investment. Easy opportunities to arbitrage dry up.