I know it was an example, but if rates go to 8% (not even terrible on a long term scale) anytime in the next few years housing would be in for a world of hurt re pricing.
Yes, that same house should be able to be bought for less because affordability for qualification purposes (DTI) would be reduced dramatically in that environment.
Depends also what income growth was over that period that arrived at an 8% interest rate environment. Inflation out of control most likely?
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