[quote=XBoxBoy]I’m not claiming any more weight or correlation to rates than inflation. I’m claiming that rates combined with inflation are the principle drivers of house price increases.
And I agree that wage inflation would be more appropriate than general inflation, and can see your point that low wage earners can probably be ignored. But I also doubt that there would be much difference in the charts. Maybe someone like Rich has wage inflation data we could use?[/quote]
The reason why I think you’re put more weight on the rate than inflation because you assume price increase because rate goes down. In the 70s, rates went up and price went up as well. Maybe, if you have data as far back as 1970, you can use the same chart to see if your hypothesis still apply in a rising rate scenario.
