[quote=SD Realtor]I would say though that housing is a payment based purchase. You don’t care about the price (as long as prop tax is only 1%) but if you cannot crack that payment each month you are screwed.

A 600k 80/20 loan payment for a couple making 125k at 3.5% is one thing but quite different at 8%.[/quote]
I agree most people only care about monthly payment. But you have to keep that into perspective as well. IIRC, we’re at or near an all time low in term of monthly payment. I don’t see rates going from 3.5% to 8% without massive economic and nominal wage growth. TPTB won’t let that happen. If you think that they’ll have no choice, what make you think rate will stop at 8% and what make you think wage won’t rise around that level? Rate doesn’t act in a vacuum.