I think it is more complex and that different times and circumstances may or may not invalidate the effect of pricing from interest rates. I don’t have the data but I would guess that the percentage of monthly take home pay that housing costs back in the 80s when rates flew up was much lower then it would be today. That is because the 200k home in the mid 80s is now most likely the 500 or 600k home today. Not many ancillary fees like Mello Roos or HOA as well. I mean I do agree that in the past there may not have been exceptional effects on pricing due to rate hikes. I am not so sure that will be the case in the future but obviously there are alot of factors in play.

For the homebuyer of today and the past, I don’t think it is a bad thing, especially if you lock into a low rate. I don’t plan on selling anything I have bought so I will be quite happy paying 3 or 4% when rates are sky high. Until then I will save cash and when it happens, buy bonds.