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  • February 12, 2011 at 11:11 PM #18521
    Doooh
    Participant

    It the math right? I saw this in the comment section in one of the many articles covering the recent intrest rake hike.

    All things equal does the math pan out? Does a buyer loose 10% of his purchasing power with a 1% higher interest rate. The caveat “all things equal” is rightfully applied because of the short window in which the rates spiked.

    February 13, 2011 at 6:17 AM #665601
    Doooh
    Participant

    Sorry about the formatting:

      4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
    $1,000 $261,826.55 $232,852.02 $208,489.52 $187,884.46 $170,354.37 $155,352.33 $142,438.52 $131,257.93 $121,522.91 $112,999.51 $105,496.65 $98,857.68
    $1,100 $288,009.21 $256,137.22 $229,338.47 $206,672.91 $187,389.80 $170,887.57 $156,682.38 $144,383.73 $133,675.21 $124,299.46 $116,046.31 $108,743.45
    $1,200 $314,191.86 $279,422.43 $250,187.42 $225,461.35 $204,425.24 $186,422.80 $170,926.23 $157,509.52 $145,827.50 $135,599.41 $126,595.98 $118,629.21
    $1,300 $340,374.52 $302,707.63 $271,036.37 $244,249.80 $221,460.68 $201,958.03 $185,170.08 $170,635.31 $157,979.79 $146,899.36 $137,145.64 $128,514.98
    $1,400 $366,557.17 $325,992.83 $291,885.33 $263,038.24 $238,496.11 $217,493.26 $199,413.93 $183,761.11 $170,132.08 $158,199.31 $147,695.31 $138,400.75
    $1,500 $392,739.83 $349,278.03 $312,734.28 $281,826.69 $255,531.55 $233,028.50 $213,657.79 $196,886.90 $182,284.37 $169,499.26 $158,244.97 $148,286.52
    $1,600 $418,922.48 $372,563.23 $333,583.23 $300,615.14 $272,566.99 $248,563.73 $227,901.64 $210,012.69 $194,436.66 $180,799.21 $168,794.64 $158,172.28
    $1,700 $445,105.14 $395,848.44 $354,432.18 $319,403.58 $289,602.43 $264,098.96 $242,145.49 $223,138.49 $206,588.95 $192,099.16 $179,344.30 $168,058.05
    $1,800 $471,287.79 $419,133.64 $375,281.13 $338,192.03 $306,637.86 $279,634.20 $256,389.34 $236,264.28 $218,741.24 $203,399.11 $189,893.97 $177,943.82
    $1,900 $497,470.45 $442,418.84 $396,130.08 $356,980.47 $323,673.30 $295,169.43 $270,633.20 $249,390.07 $230,893.54 $214,699.06 $200,443.63 $187,829.59
    $2,000 $523,653.10 $465,704.04 $416,979.04 $375,768.92 $340,708.74 $310,704.66 $284,877.05 $262,515.87 $243,045.83 $225,999.01 $210,993.30 $197,715.36
    $2,100 $549,835.76 $488,989.24 $437,827.99 $394,557.37 $357,744.17 $326,239.90 $299,120.90 $275,641.66 $255,198.12 $237,298.96 $221,542.96 $207,601.12
    $2,200 $576,018.41 $512,274.45 $458,676.94 $413,345.81 $374,779.61 $341,775.13 $313,364.75 $288,767.45 $267,350.41 $248,598.91 $232,092.63 $217,486.89
    $2,300 $602,201.07 $535,559.65 $479,525.89 $432,134.26 $391,815.05 $357,310.36 $327,608.61 $301,893.24 $279,502.70 $259,898.87 $242,642.29 $227,372.66
    $2,400 $628,383.72 $558,844.85 $500,374.84 $450,922.70 $408,850.48 $372,845.60 $341,852.46 $315,019.04 $291,654.99 $271,198.82 $253,191.96 $237,258.43
    $2,500 $654,566.38 $582,130.05 $521,223.79 $469,711.15 $425,885.92 $388,380.83 $356,096.31 $328,144.83 $303,807.28 $282,498.77 $263,741.62 $247,144.20

    February 13, 2011 at 6:17 AM #665663
    Doooh
    Participant

    Sorry about the formatting:

      4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
    $1,000 $261,826.55 $232,852.02 $208,489.52 $187,884.46 $170,354.37 $155,352.33 $142,438.52 $131,257.93 $121,522.91 $112,999.51 $105,496.65 $98,857.68
    $1,100 $288,009.21 $256,137.22 $229,338.47 $206,672.91 $187,389.80 $170,887.57 $156,682.38 $144,383.73 $133,675.21 $124,299.46 $116,046.31 $108,743.45
    $1,200 $314,191.86 $279,422.43 $250,187.42 $225,461.35 $204,425.24 $186,422.80 $170,926.23 $157,509.52 $145,827.50 $135,599.41 $126,595.98 $118,629.21
    $1,300 $340,374.52 $302,707.63 $271,036.37 $244,249.80 $221,460.68 $201,958.03 $185,170.08 $170,635.31 $157,979.79 $146,899.36 $137,145.64 $128,514.98
    $1,400 $366,557.17 $325,992.83 $291,885.33 $263,038.24 $238,496.11 $217,493.26 $199,413.93 $183,761.11 $170,132.08 $158,199.31 $147,695.31 $138,400.75
    $1,500 $392,739.83 $349,278.03 $312,734.28 $281,826.69 $255,531.55 $233,028.50 $213,657.79 $196,886.90 $182,284.37 $169,499.26 $158,244.97 $148,286.52
    $1,600 $418,922.48 $372,563.23 $333,583.23 $300,615.14 $272,566.99 $248,563.73 $227,901.64 $210,012.69 $194,436.66 $180,799.21 $168,794.64 $158,172.28
    $1,700 $445,105.14 $395,848.44 $354,432.18 $319,403.58 $289,602.43 $264,098.96 $242,145.49 $223,138.49 $206,588.95 $192,099.16 $179,344.30 $168,058.05
    $1,800 $471,287.79 $419,133.64 $375,281.13 $338,192.03 $306,637.86 $279,634.20 $256,389.34 $236,264.28 $218,741.24 $203,399.11 $189,893.97 $177,943.82
    $1,900 $497,470.45 $442,418.84 $396,130.08 $356,980.47 $323,673.30 $295,169.43 $270,633.20 $249,390.07 $230,893.54 $214,699.06 $200,443.63 $187,829.59
    $2,000 $523,653.10 $465,704.04 $416,979.04 $375,768.92 $340,708.74 $310,704.66 $284,877.05 $262,515.87 $243,045.83 $225,999.01 $210,993.30 $197,715.36
    $2,100 $549,835.76 $488,989.24 $437,827.99 $394,557.37 $357,744.17 $326,239.90 $299,120.90 $275,641.66 $255,198.12 $237,298.96 $221,542.96 $207,601.12
    $2,200 $576,018.41 $512,274.45 $458,676.94 $413,345.81 $374,779.61 $341,775.13 $313,364.75 $288,767.45 $267,350.41 $248,598.91 $232,092.63 $217,486.89
    $2,300 $602,201.07 $535,559.65 $479,525.89 $432,134.26 $391,815.05 $357,310.36 $327,608.61 $301,893.24 $279,502.70 $259,898.87 $242,642.29 $227,372.66
    $2,400 $628,383.72 $558,844.85 $500,374.84 $450,922.70 $408,850.48 $372,845.60 $341,852.46 $315,019.04 $291,654.99 $271,198.82 $253,191.96 $237,258.43
    $2,500 $654,566.38 $582,130.05 $521,223.79 $469,711.15 $425,885.92 $388,380.83 $356,096.31 $328,144.83 $303,807.28 $282,498.77 $263,741.62 $247,144.20

    February 13, 2011 at 6:17 AM #666262
    Doooh
    Participant

    Sorry about the formatting:

      4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
    $1,000 $261,826.55 $232,852.02 $208,489.52 $187,884.46 $170,354.37 $155,352.33 $142,438.52 $131,257.93 $121,522.91 $112,999.51 $105,496.65 $98,857.68
    $1,100 $288,009.21 $256,137.22 $229,338.47 $206,672.91 $187,389.80 $170,887.57 $156,682.38 $144,383.73 $133,675.21 $124,299.46 $116,046.31 $108,743.45
    $1,200 $314,191.86 $279,422.43 $250,187.42 $225,461.35 $204,425.24 $186,422.80 $170,926.23 $157,509.52 $145,827.50 $135,599.41 $126,595.98 $118,629.21
    $1,300 $340,374.52 $302,707.63 $271,036.37 $244,249.80 $221,460.68 $201,958.03 $185,170.08 $170,635.31 $157,979.79 $146,899.36 $137,145.64 $128,514.98
    $1,400 $366,557.17 $325,992.83 $291,885.33 $263,038.24 $238,496.11 $217,493.26 $199,413.93 $183,761.11 $170,132.08 $158,199.31 $147,695.31 $138,400.75
    $1,500 $392,739.83 $349,278.03 $312,734.28 $281,826.69 $255,531.55 $233,028.50 $213,657.79 $196,886.90 $182,284.37 $169,499.26 $158,244.97 $148,286.52
    $1,600 $418,922.48 $372,563.23 $333,583.23 $300,615.14 $272,566.99 $248,563.73 $227,901.64 $210,012.69 $194,436.66 $180,799.21 $168,794.64 $158,172.28
    $1,700 $445,105.14 $395,848.44 $354,432.18 $319,403.58 $289,602.43 $264,098.96 $242,145.49 $223,138.49 $206,588.95 $192,099.16 $179,344.30 $168,058.05
    $1,800 $471,287.79 $419,133.64 $375,281.13 $338,192.03 $306,637.86 $279,634.20 $256,389.34 $236,264.28 $218,741.24 $203,399.11 $189,893.97 $177,943.82
    $1,900 $497,470.45 $442,418.84 $396,130.08 $356,980.47 $323,673.30 $295,169.43 $270,633.20 $249,390.07 $230,893.54 $214,699.06 $200,443.63 $187,829.59
    $2,000 $523,653.10 $465,704.04 $416,979.04 $375,768.92 $340,708.74 $310,704.66 $284,877.05 $262,515.87 $243,045.83 $225,999.01 $210,993.30 $197,715.36
    $2,100 $549,835.76 $488,989.24 $437,827.99 $394,557.37 $357,744.17 $326,239.90 $299,120.90 $275,641.66 $255,198.12 $237,298.96 $221,542.96 $207,601.12
    $2,200 $576,018.41 $512,274.45 $458,676.94 $413,345.81 $374,779.61 $341,775.13 $313,364.75 $288,767.45 $267,350.41 $248,598.91 $232,092.63 $217,486.89
    $2,300 $602,201.07 $535,559.65 $479,525.89 $432,134.26 $391,815.05 $357,310.36 $327,608.61 $301,893.24 $279,502.70 $259,898.87 $242,642.29 $227,372.66
    $2,400 $628,383.72 $558,844.85 $500,374.84 $450,922.70 $408,850.48 $372,845.60 $341,852.46 $315,019.04 $291,654.99 $271,198.82 $253,191.96 $237,258.43
    $2,500 $654,566.38 $582,130.05 $521,223.79 $469,711.15 $425,885.92 $388,380.83 $356,096.31 $328,144.83 $303,807.28 $282,498.77 $263,741.62 $247,144.20

    February 13, 2011 at 6:17 AM #666397
    Doooh
    Participant

    Sorry about the formatting:

      4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
    $1,000 $261,826.55 $232,852.02 $208,489.52 $187,884.46 $170,354.37 $155,352.33 $142,438.52 $131,257.93 $121,522.91 $112,999.51 $105,496.65 $98,857.68
    $1,100 $288,009.21 $256,137.22 $229,338.47 $206,672.91 $187,389.80 $170,887.57 $156,682.38 $144,383.73 $133,675.21 $124,299.46 $116,046.31 $108,743.45
    $1,200 $314,191.86 $279,422.43 $250,187.42 $225,461.35 $204,425.24 $186,422.80 $170,926.23 $157,509.52 $145,827.50 $135,599.41 $126,595.98 $118,629.21
    $1,300 $340,374.52 $302,707.63 $271,036.37 $244,249.80 $221,460.68 $201,958.03 $185,170.08 $170,635.31 $157,979.79 $146,899.36 $137,145.64 $128,514.98
    $1,400 $366,557.17 $325,992.83 $291,885.33 $263,038.24 $238,496.11 $217,493.26 $199,413.93 $183,761.11 $170,132.08 $158,199.31 $147,695.31 $138,400.75
    $1,500 $392,739.83 $349,278.03 $312,734.28 $281,826.69 $255,531.55 $233,028.50 $213,657.79 $196,886.90 $182,284.37 $169,499.26 $158,244.97 $148,286.52
    $1,600 $418,922.48 $372,563.23 $333,583.23 $300,615.14 $272,566.99 $248,563.73 $227,901.64 $210,012.69 $194,436.66 $180,799.21 $168,794.64 $158,172.28
    $1,700 $445,105.14 $395,848.44 $354,432.18 $319,403.58 $289,602.43 $264,098.96 $242,145.49 $223,138.49 $206,588.95 $192,099.16 $179,344.30 $168,058.05
    $1,800 $471,287.79 $419,133.64 $375,281.13 $338,192.03 $306,637.86 $279,634.20 $256,389.34 $236,264.28 $218,741.24 $203,399.11 $189,893.97 $177,943.82
    $1,900 $497,470.45 $442,418.84 $396,130.08 $356,980.47 $323,673.30 $295,169.43 $270,633.20 $249,390.07 $230,893.54 $214,699.06 $200,443.63 $187,829.59
    $2,000 $523,653.10 $465,704.04 $416,979.04 $375,768.92 $340,708.74 $310,704.66 $284,877.05 $262,515.87 $243,045.83 $225,999.01 $210,993.30 $197,715.36
    $2,100 $549,835.76 $488,989.24 $437,827.99 $394,557.37 $357,744.17 $326,239.90 $299,120.90 $275,641.66 $255,198.12 $237,298.96 $221,542.96 $207,601.12
    $2,200 $576,018.41 $512,274.45 $458,676.94 $413,345.81 $374,779.61 $341,775.13 $313,364.75 $288,767.45 $267,350.41 $248,598.91 $232,092.63 $217,486.89
    $2,300 $602,201.07 $535,559.65 $479,525.89 $432,134.26 $391,815.05 $357,310.36 $327,608.61 $301,893.24 $279,502.70 $259,898.87 $242,642.29 $227,372.66
    $2,400 $628,383.72 $558,844.85 $500,374.84 $450,922.70 $408,850.48 $372,845.60 $341,852.46 $315,019.04 $291,654.99 $271,198.82 $253,191.96 $237,258.43
    $2,500 $654,566.38 $582,130.05 $521,223.79 $469,711.15 $425,885.92 $388,380.83 $356,096.31 $328,144.83 $303,807.28 $282,498.77 $263,741.62 $247,144.20

    February 13, 2011 at 6:17 AM #666736
    Doooh
    Participant

    Sorry about the formatting:

      4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
    $1,000 $261,826.55 $232,852.02 $208,489.52 $187,884.46 $170,354.37 $155,352.33 $142,438.52 $131,257.93 $121,522.91 $112,999.51 $105,496.65 $98,857.68
    $1,100 $288,009.21 $256,137.22 $229,338.47 $206,672.91 $187,389.80 $170,887.57 $156,682.38 $144,383.73 $133,675.21 $124,299.46 $116,046.31 $108,743.45
    $1,200 $314,191.86 $279,422.43 $250,187.42 $225,461.35 $204,425.24 $186,422.80 $170,926.23 $157,509.52 $145,827.50 $135,599.41 $126,595.98 $118,629.21
    $1,300 $340,374.52 $302,707.63 $271,036.37 $244,249.80 $221,460.68 $201,958.03 $185,170.08 $170,635.31 $157,979.79 $146,899.36 $137,145.64 $128,514.98
    $1,400 $366,557.17 $325,992.83 $291,885.33 $263,038.24 $238,496.11 $217,493.26 $199,413.93 $183,761.11 $170,132.08 $158,199.31 $147,695.31 $138,400.75
    $1,500 $392,739.83 $349,278.03 $312,734.28 $281,826.69 $255,531.55 $233,028.50 $213,657.79 $196,886.90 $182,284.37 $169,499.26 $158,244.97 $148,286.52
    $1,600 $418,922.48 $372,563.23 $333,583.23 $300,615.14 $272,566.99 $248,563.73 $227,901.64 $210,012.69 $194,436.66 $180,799.21 $168,794.64 $158,172.28
    $1,700 $445,105.14 $395,848.44 $354,432.18 $319,403.58 $289,602.43 $264,098.96 $242,145.49 $223,138.49 $206,588.95 $192,099.16 $179,344.30 $168,058.05
    $1,800 $471,287.79 $419,133.64 $375,281.13 $338,192.03 $306,637.86 $279,634.20 $256,389.34 $236,264.28 $218,741.24 $203,399.11 $189,893.97 $177,943.82
    $1,900 $497,470.45 $442,418.84 $396,130.08 $356,980.47 $323,673.30 $295,169.43 $270,633.20 $249,390.07 $230,893.54 $214,699.06 $200,443.63 $187,829.59
    $2,000 $523,653.10 $465,704.04 $416,979.04 $375,768.92 $340,708.74 $310,704.66 $284,877.05 $262,515.87 $243,045.83 $225,999.01 $210,993.30 $197,715.36
    $2,100 $549,835.76 $488,989.24 $437,827.99 $394,557.37 $357,744.17 $326,239.90 $299,120.90 $275,641.66 $255,198.12 $237,298.96 $221,542.96 $207,601.12
    $2,200 $576,018.41 $512,274.45 $458,676.94 $413,345.81 $374,779.61 $341,775.13 $313,364.75 $288,767.45 $267,350.41 $248,598.91 $232,092.63 $217,486.89
    $2,300 $602,201.07 $535,559.65 $479,525.89 $432,134.26 $391,815.05 $357,310.36 $327,608.61 $301,893.24 $279,502.70 $259,898.87 $242,642.29 $227,372.66
    $2,400 $628,383.72 $558,844.85 $500,374.84 $450,922.70 $408,850.48 $372,845.60 $341,852.46 $315,019.04 $291,654.99 $271,198.82 $253,191.96 $237,258.43
    $2,500 $654,566.38 $582,130.05 $521,223.79 $469,711.15 $425,885.92 $388,380.83 $356,096.31 $328,144.83 $303,807.28 $282,498.77 $263,741.62 $247,144.20

    February 13, 2011 at 7:57 AM #665616
    Doooh
    Participant

    4% APR
    $1900 payment on $497,470

    5% APR
    $1900 payment on $442,418

    That’s a 11% drop in the price of a house with a increase interest rate of 1%. (4% interest to 5%)

    February 13, 2011 at 7:57 AM #665678
    Doooh
    Participant

    4% APR
    $1900 payment on $497,470

    5% APR
    $1900 payment on $442,418

    That’s a 11% drop in the price of a house with a increase interest rate of 1%. (4% interest to 5%)

    February 13, 2011 at 7:57 AM #666276
    Doooh
    Participant

    4% APR
    $1900 payment on $497,470

    5% APR
    $1900 payment on $442,418

    That’s a 11% drop in the price of a house with a increase interest rate of 1%. (4% interest to 5%)

    February 13, 2011 at 7:57 AM #666412
    Doooh
    Participant

    4% APR
    $1900 payment on $497,470

    5% APR
    $1900 payment on $442,418

    That’s a 11% drop in the price of a house with a increase interest rate of 1%. (4% interest to 5%)

    February 13, 2011 at 7:57 AM #666751
    Doooh
    Participant

    4% APR
    $1900 payment on $497,470

    5% APR
    $1900 payment on $442,418

    That’s a 11% drop in the price of a house with a increase interest rate of 1%. (4% interest to 5%)

    February 14, 2011 at 8:09 AM #666037
    (former)FormerSanDiegan
    Participant

    If rates changed instantaneously by 1% and no other factors in the economy changed, then the price would be inversely related to rate.

    However, rate changes never happen in a vaccum. Rates respond to underlying economics, so changes in home prices rarely respond as you suggest.

    Example #1: From 2006 to 2010, 30-yr mortgage rates declined from around 6.5% to less than 5%.
    Did prices increase by 10%+ during that period ? Hell No. Prices declined at the steepest rates since the depression.

    Example #2: In late 2002 30-yr mortgage interest rates were at 6%. BY mid 2006 they were 6.5%.
    Were home prices flat during that period ? No. They were quite bubblicious.

    Example #3: From 1990 to 1995 rates dropped from 10% + to about 7.5%. Did prices rise during this period ? Not really.
    This period included the worst decline (until superceded by the 2006-2009 decline) in home prices in post-war California.

    Example #4: In 1972, 30-yr mortgage rates were about 7.4%. By 1989, rates were above 10%. What did home prices do doing this period ?
    Hint: they did not decline.

    The simple point is that it’s not that simple. Rates do not change in a vacuum. As a thought experiment prices are inversely proportional to rates, but in reality, it is not neccessarily so.

    February 14, 2011 at 8:09 AM #666098
    (former)FormerSanDiegan
    Participant

    If rates changed instantaneously by 1% and no other factors in the economy changed, then the price would be inversely related to rate.

    However, rate changes never happen in a vaccum. Rates respond to underlying economics, so changes in home prices rarely respond as you suggest.

    Example #1: From 2006 to 2010, 30-yr mortgage rates declined from around 6.5% to less than 5%.
    Did prices increase by 10%+ during that period ? Hell No. Prices declined at the steepest rates since the depression.

    Example #2: In late 2002 30-yr mortgage interest rates were at 6%. BY mid 2006 they were 6.5%.
    Were home prices flat during that period ? No. They were quite bubblicious.

    Example #3: From 1990 to 1995 rates dropped from 10% + to about 7.5%. Did prices rise during this period ? Not really.
    This period included the worst decline (until superceded by the 2006-2009 decline) in home prices in post-war California.

    Example #4: In 1972, 30-yr mortgage rates were about 7.4%. By 1989, rates were above 10%. What did home prices do doing this period ?
    Hint: they did not decline.

    The simple point is that it’s not that simple. Rates do not change in a vacuum. As a thought experiment prices are inversely proportional to rates, but in reality, it is not neccessarily so.

    February 14, 2011 at 8:09 AM #666698
    (former)FormerSanDiegan
    Participant

    If rates changed instantaneously by 1% and no other factors in the economy changed, then the price would be inversely related to rate.

    However, rate changes never happen in a vaccum. Rates respond to underlying economics, so changes in home prices rarely respond as you suggest.

    Example #1: From 2006 to 2010, 30-yr mortgage rates declined from around 6.5% to less than 5%.
    Did prices increase by 10%+ during that period ? Hell No. Prices declined at the steepest rates since the depression.

    Example #2: In late 2002 30-yr mortgage interest rates were at 6%. BY mid 2006 they were 6.5%.
    Were home prices flat during that period ? No. They were quite bubblicious.

    Example #3: From 1990 to 1995 rates dropped from 10% + to about 7.5%. Did prices rise during this period ? Not really.
    This period included the worst decline (until superceded by the 2006-2009 decline) in home prices in post-war California.

    Example #4: In 1972, 30-yr mortgage rates were about 7.4%. By 1989, rates were above 10%. What did home prices do doing this period ?
    Hint: they did not decline.

    The simple point is that it’s not that simple. Rates do not change in a vacuum. As a thought experiment prices are inversely proportional to rates, but in reality, it is not neccessarily so.

    February 14, 2011 at 8:09 AM #666838
    (former)FormerSanDiegan
    Participant

    If rates changed instantaneously by 1% and no other factors in the economy changed, then the price would be inversely related to rate.

    However, rate changes never happen in a vaccum. Rates respond to underlying economics, so changes in home prices rarely respond as you suggest.

    Example #1: From 2006 to 2010, 30-yr mortgage rates declined from around 6.5% to less than 5%.
    Did prices increase by 10%+ during that period ? Hell No. Prices declined at the steepest rates since the depression.

    Example #2: In late 2002 30-yr mortgage interest rates were at 6%. BY mid 2006 they were 6.5%.
    Were home prices flat during that period ? No. They were quite bubblicious.

    Example #3: From 1990 to 1995 rates dropped from 10% + to about 7.5%. Did prices rise during this period ? Not really.
    This period included the worst decline (until superceded by the 2006-2009 decline) in home prices in post-war California.

    Example #4: In 1972, 30-yr mortgage rates were about 7.4%. By 1989, rates were above 10%. What did home prices do doing this period ?
    Hint: they did not decline.

    The simple point is that it’s not that simple. Rates do not change in a vacuum. As a thought experiment prices are inversely proportional to rates, but in reality, it is not neccessarily so.

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