re: #15 Guanxi88

Ah, but keep in mind the whack-a-mole effect of interest rates. Suppose the typical customer wants the most house he can manage with $x per month payments. (Whipping out the financial calculator), ignoring down payments and taxes, the same 30 years’ payments can pay off the $200k house at 4% or a $130k house at 8%. It’s the same $955/mo either way to the borrower.

Dropping interest rates indirectly raises prices independently of our trend to buy bigger houses over time. This trend is even more obvious, and harmful, and seldom reported, in the relationship of cheap student loans and tuition, imho.

But I’ve been goofing off and happy for too long now, later taters!