That 34% correction is composed of a 10% increase in rents and a 24% decrease in home values. As far as interest rates, they say “Today average real rates for all mortgages, fixed and adjustable, stand at 4.7% (adjusted for inflation), which is roughly in line with the long-term average.” I wonder just how “rough” that average is, and why they would think it would trend below the average, rise back up to the average and then simply stop.
