If rates go up, house prices should correspondingly go down, perhaps at an even greater rate. Could you imagine the price of homes if there was another 1% added to the 30 year benchmark?
As more potential buyers flee from owning, interest rate increases should accelerate the trend.
Am I banking on this? No. I think that interest rates will stay stable for some time as it would put too much pressure on housing. Could they fall? Perhaps but not by much.
Note: I am no expert. I am a computer exec. This is just my humble opinion, but at this point nothing would surprise me!
