Re:Barely Half of 30-Year-Olds in the U.S. Earn More Than Th...
by AnimalMuppet on Thursday December 08, 2016 @03:49PM
(#13134159)
> Interest rates are a much more likely culprit.
To expand on that a bit: Supply and demand in houses doesn't work on the price. Supply works on the price; demand works on the monthly payments. When interest rates go down, the same people can now spend more on a house for the same monthly payments, and so the price rises.
To expand on that a bit: Supply and demand in houses doesn't work on the price. Supply works on the price; demand works on the monthly payments. When interest rates go down, the same people can now spend more on a house for the same monthly payments, and so the price rises.