My research on home price movement does not show a real tight relationship to interest rates. When I first started studying this I was trying to use my knowledge of the bond market as an edge in forecasting housing. I was very surprised to find out that the relationship was not consistent.
My guess as to why this is true relates to market psychology. Maybe once the good ol momentum ball gets rolling one way, a clear fundamental like this gets basically ignored. I think we are in a down cycle and rates will have virtually no effect on it. Affordability still at some point has to matter.
Besides, I love being called a “bitter renter” by someone with 1/20th of my asset base. Keep it coming LOL! These types of people never have the big asset cycles right, it is a rule of nature.
Is anyone in this blog with the real name Ben Santos? If so please send me an email, the email address I got for you was invalid and as a result I could not reply.
