If you think things are bad for the average folks now, wait until mortgage rates get insane, inflation rises, while salaries stay stagnant. Wrong. Higher mortgage interest rates will simply drive prices down more.
I'm not disagreeing with your statement. Higher mortgage rates will drive prices down more. I'm just trying to understand how people think that during a period when mortgage rates are high, why inflation isn't going to be a problem and how it's not going to significantly eat into their purchasing power when that time comes to buy a home.
I'm just curious home many folks are planning to purchase without a conventional loan (20% down, etc). How many of us will be really affected if for example, it's $4/gallon to fill up, or if the cost of medicine goes up say 20%. Why would mortgage rates run rampant in a vacuum?
