Quote:
Originally Posted by ASAP
the fallacy w historical rates is that prices are also at an all time high combined w the highest % of income spent on housing EVER... so there is that, if we go to a 10% rate... this becomes a cash only real estate market
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Super high rates will cause prices to drop. Supply and demand. If you want/need to sell your house and nobody can afford it you will drop your price. It will never become a cash only market as almost no one can afford to do this and part of the ones that can don't want to.
Your theory is rates go to 10% and prices aren't affected?
I also don't think housing prices are at an all time high now (as an average across the country, maybe in your area it is different).
