There’s a little thing called “unemployment” that may foil your prediction of rising house prices. Rates come down in a crash, but the historical evidence shows that there’s not a strong correlation to rising prices just because the rates are low.
The charts indicate that rising employment is the clearest and strongest single indicator of home prices rising, not the cost of money. When low rates are combined with rising employment, then you’ve got the strongest possibility for rising home prices.
The late 1980’s had very high interest rates and prices rose, but there was employment growth. Rates bottomed in 1993, but home prices did not rise until employment started to rise in 1995.
