[quote=FormerSanDiegan]
Interest rates increased dramatically in the period form the late 1960’s to 1982. Did the rate of change of home prices increase or decrease ?[/quote]
It did both. Prices were mostly flat through the mid 70’s. As were rates. There was a bit of a real estate bubble at the end of the ’70’s, though prices did not rise as much as the CPI, as mortgage interest rates had already risen from the 4 to 7% range, to over 9% by mid ’74. RE prices peaked around 1980, then fell sharply through most of the next decade.
I think you’re asking the wrong question. The right question is what would have happened to home prices if not but for the changes in interest rates.
