Mortgage Rates Could Tank Home Prices by 20%, Fed Study Finds

Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by sokoloff on Wednesday November 16, 2022 @10:34AM (#33624777)

You're still competing against the other people who are in your similar economic circumstances. The reasons that you got outbid today aren't going to get dramatically better when you and millions of other people now have a 20% downpayment instead of a 15% downpayment.

(This is the general you, not the specific you, of course.)

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Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by connicpu on Wednesday November 16, 2022 @11:03AM (#33625358)

Higher interest rates will discourage the investor class from snatching up homes they don't intend to live in though. Not all of them of course, but the demand for living in homes is far less elastic than that of those using them to make money

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Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by sokoloff on Wednesday November 16, 2022 @11:06AM (#33625422)

Agreed; that's got about epsilon-squared to do with achieving the 20% down payment threshold, though.

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