If you have a second home at 3% that means your first home is paid off. You wouldn’t get that rate for an income property.

There are several good reasons for selling it, mostly emergency or retirement reasons. I would keep it and rent it. Inflation is more than double that 3%, “officially”.

What a great problem to have.

Anecdotal data, regarding value drops. I’m in a 30 fixed at 3% in Arkansas. Houses I was looking at in a new subdivision were around $410 when I was looking, this time 2020. They are now in the $700s, and that’s with the current interest rate. So 3 years of mortgage payments, down payments, you’re looking at an outstanding balance on the loan of… around $300k?

The value drop people think needs to happen probably won’t ever happen. Especially since the USD is turning into Monopoly money due to terrible fiscal policy.

Good advice. In our particular case, we bought a new home and are letting family member stay at old one, so have two mortgages.

> Sitting on a home with 2-3% interest is all well and good, until the value drops and you’re sitting on a much worse asset.

What is the mechanism of action that causes the value to drop?

Higher interest rates mean lower house values.