[quote=birmingplumb]
There is a saying in real estate ‘as rates go down, prices go up and vice versa as rates go up prices drop” all due to monthly payments which is what all or most all look at not total price. [/quote]
Just because there’s a saying doesn’t make it true. That saying is a fallacy and as mentioned abve have been discussed ad nauseum on this board. But, some people are new, so it comes up periodically.
So… here are the Cliff’s notes…
Consider home prices and interest rates from the mid 1960’s to 1980.
30-year mortgage rates circa 1966 were about 5.5%
By 1981 they were 16 – 17%. So interest rates tripled in 15 years.
What did home prices do from 1966 to 1981 ?
New homes in the US went from about 22K median in 1966 to about 75 K in 1981.
