I’m thinking purely of the income it takes to support the mortgage, not any psychological factors (behavioral factors may swing with the winds of popular opinion, but the fundamentals are the fundamentals). As long as rates stay below 8-9% (which I think they will), 100K will support a 350K house.
If rates go higher, that means we have inflation and we won’t need the same kind of nominal declines to get back to normalcy.
