It will prevent the nominal values of the homes from falling, but what will that do to our savings?
They’re in interest-bearing accounts, right? Your savings will be rising right along with inflation, as depositors demand appropriate returns from banks based on the situation at hand. You’ll still be getting “ahead” of those with no cash even though you’ll probably lose a bit to inflation. In a rising-interest rate environment, short-term instruments are the best bet.
