Honestly, I think that these buyers would benefit from higher rates. It’s not the buyers who’ve benefited from low rates, but the sellers, who could sell for higher prices, and existing homeowners who could refi into lower rates.
If staying at mom’s house enables them to save a lot of money in the next ten years, they may well find themselves in the enviable position of having a large amount of cash when rates are much higher and the investors’ attention moves on to other investments that are more profitable and easier to manage in a high-rate environment.
Nobody knows, but the current market is very much a seller’s market, so it might be best for many buyers, depending on their personal situations, to wait out this period of “irrational exuberance” that’s been caused by the heavily manipulated interest rate and housing market environments.
