Quote:
Originally Posted by Flash68
That is a nice anecdotal piece and I don't disagree, however, interest rates and home prices are for the most part inversely connected over time. It's not perfect, but it does largely follow that "hypothetical."
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There's no question that they are linked..... but what the reality is is that prices don't go UP --- and buyers are forced to buy down to what they can afford on a monthly basis as rates rise... so while the two are related - the rise in rates doesn't mean that suddenly houses are going to go down 25%. It just doesn't happen. What you really see is that houses go UP quickly (too fast) as the rates are low.
What I was trying to show with my rate example is that while you might get a house a smidgen lower -- you'll more than make up for your "deal" in interest.
The perfect storm to buy has been the last two or three years --- falling house prices with the lowest rates in 50 years. Not likely to repeat that scenario --- as houses are already getting multi bids - prices inching up -- and it's almost a given that rates will climb from these historic lows.