Re:Low interest rates in advanced countries have pushed mone...
by hapless on Thursday November 25, 2021 @06:47PM
(#29346153)
If interest rates go up, homeowners are instantly underwater on their mortgages.
Purchase cost on housing is very, very tightly correlated with the interest rates, because shoppers' budgets are determined by their monthly payments, not by the total cost of the house.
When interest rates go up, potential buyers can't afford to borrow as much money, and prices have to fall.
Purchase cost on housing is very, very tightly correlated with the interest rates, because shoppers' budgets are determined by their monthly payments, not by the total cost of the house.
When interest rates go up, potential buyers can't afford to borrow as much money, and prices have to fall.