LogFAQs > #968622761

MrDrMan posted...

I thought raising interest rates is supposed to drive housing costs down? Meaning instead of paying 6% on 400k youd be paying 6% on a lower amount.

Regardless I wouldnt say what weve had was an ideal time to buy. Housing costs have been absurd. Even with 0 interest overpaying is overpaying.

Interest rates are only one factor that effects the market. Supply of new homes is another. We are still in a supply crunch of homes that drives the price up, but If you are a builder, why would want to solve this necessarily?

Investors have also become way more prevalent in the market nowadays with rentals and corporate purchases. The large investors can usually out right purchase with cash, so interest rates are less of an issue for them than a normal person trying to buy a home if they have to go through with a mortgage. More 2nd homes and investment homes being snatched up means less homes out there for people who need a first home.