I argue that there are some good reasons for this, but whether you agree with those reasons or not, the fact is that rates have had little influence on prices in the past. You are claiming a correlation (a causality, really) that isn’t there.
[/quote]
“This is big, in my view. Low rates have been a big driver of housing demand, for both investors (who are seeking out yield wherever they can find it) and residents (who are compelled to buy due to the favorable rent-vs-buy comparison enabled by super low rates). This rate increase will almost certainly undercut both sources of demand.”
