Quote:
Originally Posted by blankall
Rates will affect prices, but not as much as people think. Rates affect monthly amount owing. A major factor driving prices is large down payments and lack of supply. We'll continue to see people throw down $200-500k down payments. The people throwing those down payments down aren't overly concerned if their monthly mortgage payment is $2,500 or $3,500. Additionally, a lot of the interest increases are already built into the stress tests.
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I don't entirely agree with this.
People save to have the downpayment money - once they have it, they have it.
What matters - to most people - is monthly expenses/cash flow. Raising their mtge from $2,500 to $3,500 per month is a big deal to most people.