Prices may take a few months to adjust to higher interest rates, but they will adjust. And lots of folks just on this blog have been waiting for years to buy, not just a few months.
I can remember earning close to 10% on a CD in the mid 1980’s. What were mortgage rates then?
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Mortgage rates in the mid 80s was around mid teens.[/quote]
It’s important to note though that in past cycles, even when interest rates were sky-high, it didn’t lead to a significant deflationary effect on price.
I think the issue is that in a growing population (and our population continues to grow), housing needs to continually be built – and an inflationary environment makes new homes even more expensive to build, which can lead to a supply shortage. It’s the old supply vs. demand curve.
