you could probably use the simple relationship, 1$x1R = 2$x2R. meaning, the first loan amount 1$ times the first interest rate 1R is equal to a different loan amount 2$ times a different interest rate 2R. eg., 200k x 6% = 171k x 7%.
people aren’t missing this point, they frequently mention that if interest rates go up, home prices will come down. the converse is obviously true. the problem is that despite the low current interest rate, home prices are still over inflated:
100k @ 10% = 166k @ 6%. and not 500k.
edit: i’m tired of hearing about “inflation adjusted prices”, it’s nonsense. my wages dont get “adjusted for inflation”, it is what it is. if i get a raise, i dont call it “inflation”. justifying increases in home prices due to inflation is senseless since nobody else is calculating their wages in inflation adjusted terms. homes that become out of reach for most americans due to “inflation” aren’t inherent more valueable; they’re worth what people will/can pay for them, inflation or not!
