>1% interest SPIKE = 10% house price drop?

[(former)FormerSanDiegan]

[quote=Doooh]You sound like an X girlfriend. One extreme or the other, there was no in between.[/quote]

There is plenty of in between. You are the one suggesting a direct correspondence between interest rates and price, not me.

If it is somewhere in between, then there must be other factors. I agree with that.

Furthermore, the magnitude and direction of these other factors is often larger than the impact of interest rates as evidenced by the examples posted above.

P.S. – You never know. I might be your x girlfriend. (Did she have a beard ?)

[scaredyclassic]

If cost varied directly with interest rates, would tuition at schools vary when interest rates moved. No. Because schools Are stuck on a price. Theoretically tuition can come down and I believe if will , just in some sort of irrational seemingly random way. I think housing prices will heave up and down jn nondirect ways. Because people are nuts and optimistic, stubborn and stupid, rational but not. This is not a math thing. Kind of like if you Had listened to x girlfriend 25 perc more you would not necessarily receive 50 perc more oral sex. It could come jn waves it might never come. Whoknows?

[scaredyclassic]

If cost varied directly with interest rates, would tuition at schools vary when interest rates moved. No. Because schools Are stuck on a price. Theoretically tuition can come down and I believe if will , just in some sort of irrational seemingly random way. I think housing prices will heave up and down jn nondirect ways. Because people are nuts and optimistic, stubborn and stupid, rational but not. This is not a math thing. Kind of like if you Had listened to x girlfriend 25 perc more you would not necessarily receive 50 perc more oral sex. It could come jn waves it might never come. Whoknows?

[scaredyclassic]

If cost varied directly with interest rates, would tuition at schools vary when interest rates moved. No. Because schools Are stuck on a price. Theoretically tuition can come down and I believe if will , just in some sort of irrational seemingly random way. I think housing prices will heave up and down jn nondirect ways. Because people are nuts and optimistic, stubborn and stupid, rational but not. This is not a math thing. Kind of like if you Had listened to x girlfriend 25 perc more you would not necessarily receive 50 perc more oral sex. It could come jn waves it might never come. Whoknows?

[scaredyclassic]

If cost varied directly with interest rates, would tuition at schools vary when interest rates moved. No. Because schools Are stuck on a price. Theoretically tuition can come down and I believe if will , just in some sort of irrational seemingly random way. I think housing prices will heave up and down jn nondirect ways. Because people are nuts and optimistic, stubborn and stupid, rational but not. This is not a math thing. Kind of like if you Had listened to x girlfriend 25 perc more you would not necessarily receive 50 perc more oral sex. It could come jn waves it might never come. Whoknows?

[scaredyclassic]

If cost varied directly with interest rates, would tuition at schools vary when interest rates moved. No. Because schools Are stuck on a price. Theoretically tuition can come down and I believe if will , just in some sort of irrational seemingly random way. I think housing prices will heave up and down jn nondirect ways. Because people are nuts and optimistic, stubborn and stupid, rational but not. This is not a math thing. Kind of like if you Had listened to x girlfriend 25 perc more you would not necessarily receive 50 perc more oral sex. It could come jn waves it might never come. Whoknows?

[SD Realtor]

No your logic is flawed. People buy homes based on how much they are henpecked and how much they can afford. No matter how much they are henpecked, if they cannot afford the home then they cannot buy the home.

With only a few exceptions, people buy homes based on the monthly payment. Prices will move based on demand. Demand ebbs and flows based on many factors but one of the large factors is affordability and in some cases investment rate of return.

FSD made good sense pointing out that the price movement is in no way proportional to interest rate movement in a linear fashion. However price movement will vary based on demand and that IS based on affordability with respect to the cost of credit. It is not linear, nor does it move at the same time temporally.

[SD Realtor]

No your logic is flawed. People buy homes based on how much they are henpecked and how much they can afford. No matter how much they are henpecked, if they cannot afford the home then they cannot buy the home.

With only a few exceptions, people buy homes based on the monthly payment. Prices will move based on demand. Demand ebbs and flows based on many factors but one of the large factors is affordability and in some cases investment rate of return.

FSD made good sense pointing out that the price movement is in no way proportional to interest rate movement in a linear fashion. However price movement will vary based on demand and that IS based on affordability with respect to the cost of credit. It is not linear, nor does it move at the same time temporally.

[SD Realtor]

No your logic is flawed. People buy homes based on how much they are henpecked and how much they can afford. No matter how much they are henpecked, if they cannot afford the home then they cannot buy the home.

With only a few exceptions, people buy homes based on the monthly payment. Prices will move based on demand. Demand ebbs and flows based on many factors but one of the large factors is affordability and in some cases investment rate of return.

FSD made good sense pointing out that the price movement is in no way proportional to interest rate movement in a linear fashion. However price movement will vary based on demand and that IS based on affordability with respect to the cost of credit. It is not linear, nor does it move at the same time temporally.

[SD Realtor]

No your logic is flawed. People buy homes based on how much they are henpecked and how much they can afford. No matter how much they are henpecked, if they cannot afford the home then they cannot buy the home.

With only a few exceptions, people buy homes based on the monthly payment. Prices will move based on demand. Demand ebbs and flows based on many factors but one of the large factors is affordability and in some cases investment rate of return.

FSD made good sense pointing out that the price movement is in no way proportional to interest rate movement in a linear fashion. However price movement will vary based on demand and that IS based on affordability with respect to the cost of credit. It is not linear, nor does it move at the same time temporally.

[SD Realtor]

No your logic is flawed. People buy homes based on how much they are henpecked and how much they can afford. No matter how much they are henpecked, if they cannot afford the home then they cannot buy the home.

With only a few exceptions, people buy homes based on the monthly payment. Prices will move based on demand. Demand ebbs and flows based on many factors but one of the large factors is affordability and in some cases investment rate of return.

FSD made good sense pointing out that the price movement is in no way proportional to interest rate movement in a linear fashion. However price movement will vary based on demand and that IS based on affordability with respect to the cost of credit. It is not linear, nor does it move at the same time temporally.

[Doofrat]

Thanks FSD. I hadn’t thought about the fact that the payment is the same each month over the life of the loan, so the effect of the interest portion of the payment is spread across so many years.

[Doofrat]

Thanks FSD. I hadn’t thought about the fact that the payment is the same each month over the life of the loan, so the effect of the interest portion of the payment is spread across so many years.

[Doofrat]

Thanks FSD. I hadn’t thought about the fact that the payment is the same each month over the life of the loan, so the effect of the interest portion of the payment is spread across so many years.

[Doofrat]

Thanks FSD. I hadn’t thought about the fact that the payment is the same each month over the life of the loan, so the effect of the interest portion of the payment is spread across so many years.

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