I realize the ongoing debate regarding the correlation (or lack thereof) between rising interest rates (mortgage financing) and the relative pricing of homes is a contentious one but I just have to strike it up again…
Listing to this professor of finance, it makes sense that there really is no historical correlation/proof that interest rates have an affect on home prices in the US. But after listening to his analysis of the Canadian housing market I have to worry…
What about the affect of Obama repealing the mortgage interest deduction or significantly reducing it? I HEAVILY lean toward the belief that high end home prices will degenerate quickly if this tax provision is eliminated!
