Good on you (being a saver), but haven’t you moved much of your cash into your house? And (if it crashes more as you suggest), won’t you be pretty well under water on your current house? How is that good for you?

I assume you mean a low principal balance. Who wouldn’t like that? This is not a typical situation, however. At least not for most folks. Regardless, one simply cannot ignore opportunity cost, but I see it again and again.

And you’re right, who knows? Have you considered the possibility that interest rates could go down from here? Personally, I’m not a big believer in it, but it could happen. That said, you seem to be a fan of fairly extreme scenarios.