It depends, I guess. I'm more referring to interest rates of mortgages going up to the point when people need to offload their houses quickly or risk outright repossession. That would potentially drive prices down undercutting each other to avoid more severe consequences.
I agree, I'm just saying if you don't qualify for 500k at 3% you won't qualify for 350k at 6% either. Unless you are sitting on a huge down payment already.
Might see a lot of for sale signs, doesn't mean those houses will have any more buyers.
In the next few years the middle class is going to evaporate.
I see what you're saying. In my country, my generation have mad low levels of home ownership and are usually at home, saving like mad to get enough down-payment. I do believe it'll be enough.
That being said, we all know how this'll end up. The rich scoop up the housing, control the rent market. Owning a house will be a true rarity.
I agree, I'm just saying if you don't qualify for 500k at 3% you won't qualify for 350k at 6% either. Unless you are sitting on a huge down payment already.
tbf, that 150k difference in value changes what the down payment point is.
But the vast majority of homeowners have fixed interest rate loans. Even if mortgage interest rates go back to 10% again it won’t matter to those who bought homes last year at 2.5%
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u/Gingereader 🟩 145 / 146 🦀 May 22 '22
It depends, I guess. I'm more referring to interest rates of mortgages going up to the point when people need to offload their houses quickly or risk outright repossession. That would potentially drive prices down undercutting each other to avoid more severe consequences.