I understand the theory, but when I look at the data it looks like: http://research.stlouisfed.org/fred2/graph/?g=mth http://research.stlouisfed.org/fred2/grap

I understand the theory, but when I look at the data it looks like: http://research.stlouisfed.org/fred2/graph/?g=mth http://research.stlouisfed.org/fred2/graph/?g=mth The last real period of rising mortgage rates was in the 70s. You can pretty clearly see that home prices were rising in spite of rising financing costs.