> Though actually, now that I said all that I decided to see how much interest rates affect this and it seems that it explains a significant chunk if you try to

> Though actually, now that I said all that I decided to see how much interest rates affect this and it seems that it explains a significant chunk if you try to keep the monthly payment the same. This is an underappreciated point. As you say, the price in housing that sets the supply-and-demand curve is the monthly payment, not the purchase price. (Except for those who can pay cash, or those who are buying as an investment.)