[quote=bearishgurl]
The reality is that they aren’t. Rate hikes won’t affect the amount of buyers, either. They will only affect how much each buyer can borrow. This doesn’t mean buyers won’t buy a residence if they need one. It just won’t be the type of residence that FTB’s and STB’s have become (artificially) “accustomed to” being able to buy in recent years. It will be lesser in size, in a lesser location or in lesser condition or all three.
Buyers will have to suck it up and deal with it.
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So who will be buying the homes that aren’t “lesser in size, in a lesser location or in lesser condition or all three”?
I say the same type folks that are buying them now, only the principle (price) will be lower to meet the lower borrowing levels (demand). People aren’t getting more house now due to lower interest rates, only more debt.
