[quote=limkotir]Does anyone have historical data that highlights the correlation and causation effect of high interest rates to San Diego home sales volume and price. Maybe overlay interest rate over one of Rich’s graphs.
Simply put: how does high rate (e.g. 6% 30 year mortgage) affect sales volume, and sale price?
Home prices, like many complex real world Y-variable on a mathematical equation, probably are impacted by a handful of dynamic X variables (X1…X2…X3…etc.), it probably is never that simple and straight forward if X1 happens (interest rate), then Y will occur (sales price).
Looking to get educated by the smarter and more educated folks here! Thanks.[/quote]
The challenge with that approach is rates dont rise in a vacuum. Often they rise in a booming economy or with inflation which is bullish for home prices.
