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A comment on Homes in 97% of U.S. cities are overvalued, Moody's says. Parent comment

Re:Homes in 97% of U.S. cities are overvalued, Moody's says by finlake on Thursday May 05, 2022 @10:31PM (#31280605)
I disagree. Until now there might have been 30% buyers with cash, but with rising interest rates that will stop being the case if house prices stay up.

People with large sums of spare money always look for ways to park their money. Interest based products (term deposits, bonds etc.) will now become more attractive, diverting some cash flows away from housing.

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Re:Homes in 97% of U.S. cities are overvalued, Moody's says by smabie on Thursday May 05, 2022 @11:33PM (#31281015)
Alternatively with interest rates higher, buyers might think they can't get a higher return than the interest rate on the mortgage, thus lowering the opportunity cost of paying all in cash.
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Re:Homes in 97% of U.S. cities are overvalued, Moody's says by Ozzie_osman on Thursday May 05, 2022 @10:35PM (#31280640)
The interest on most interest based products will not rise as fast as inflation and so I'm not sure they will be "more attractive" (at least compared to real assets).
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