Do rising interest rates trigger lower housing prices?
I'm not trying to be another hipster but read a post on the Vancouver 15% tax thread yesterday that got me thinking. So I decided to google whether rising interest rates forebode peaking or lower property prices (since I'm no Economists or Wall Street expert) but according to these articles, it simply isn't true. Of course it would be different if interest rates shot up to the low double digits.
http://www.bankrate.com/finance/mortgag ... rices.aspx
https://www.integratedmortgageplanners. ... se-prices/
http://www.forbes.com/sites/billconerly ... f82627a978
http://economistsoutlook.blogs.realtor. ... me-prices/
Any thoughts? Won't the maximum amount that can be borrowed shrink slightly from the current 5.5x gross income? If that's the case, will non-detached properties start catching up with detached property prices if the latter becomes out of reach for many households? Of course, the cost of renting also plays a big role in the buy/rent decision.
http://www.bankrate.com/finance/mortgag ... rices.aspx
https://www.integratedmortgageplanners. ... se-prices/
http://www.forbes.com/sites/billconerly ... f82627a978
http://economistsoutlook.blogs.realtor. ... me-prices/
Any thoughts? Won't the maximum amount that can be borrowed shrink slightly from the current 5.5x gross income? If that's the case, will non-detached properties start catching up with detached property prices if the latter becomes out of reach for many households? Of course, the cost of renting also plays a big role in the buy/rent decision.