Quote:
Originally Posted by Winsor_Pilates
Still not following; how does this equal a 15% drop in prices?
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I think the poster means a 15% drop in the amount of mortgage you'd get for the same amount ($1500/month) and same rate (4%) not price. Not sure what that change would have on sales prices but my guess would be that prices would drop. How much not sure but without 5/35 and 0/40 mortgage terms I don't think we would have seen as large a jump in home prices. It's a key variable after low interest rates that I think have created an unsustainable and volatile housing market.