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A comment on Mortgage Rates Could Tank Home Prices by 20%, Fed Study Finds. Parent comment

Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by datadata on Wednesday November 16, 2022 @10:23AM (#33624562)
Higher rates mean that the interest on that 20% cash that you would to give up is higher, so you are giving up the opportunity cost of having a a cash flow.
[ Parent | on HN ]
Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by toomuchtodo on Wednesday November 16, 2022 @10:25AM (#33624598)
People need to live somewhere, you’re applying an efficient financial model mindset to someone who needs a roof and four walls. First time and new home buyers don’t care about the spread, they want a home.
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Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by JumpCrisscross on Wednesday November 16, 2022 @10:33AM (#33624747)
> need to live somewhere

People need housing. Nobody needs to own a home.

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Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by datadata on Wednesday November 16, 2022 @10:44AM (#33624987)
Irrelevant. I'm just saying that interest rates determine the cost of borrowing money and the interest you can earn by having money, it does not really matter what you are borrowing money to buy.
[ Parent | on HN ]
Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by tekla on Wednesday November 16, 2022 @10:57AM (#33625230)
Why are we supposed to care about people who actively make irrational decisions?
[ Parent | on HN ]