The Market Ticker
Commentary on The Capital Markets- Category [Housing]

This is utter crap:

To put a price tag on the possible cost of waiting to buy a home, real estate information website Zillow Inc. assumed that the rate on a 30-year fixed-rate mortgage would rise 1 percentage point. It calculated how that higher rate -- which would be about 5.1 percent -- would affect a buyer's monthly mortgage payments. Zillow applied that rate to the median home price in 35 metropolitan areas, assuming a 20 percent down payment and a 30-year fixed-rate mortgage.

Zillow (like the rest of the Real Estate industry) assumes that prices will not decline as rates rise.

That's because on average, over time rates have gone exactly one direction since 1980 -- down.

But in fact virtually everyone shops a payment when they buy a house, not a price.  

This is why prices went up -- and it is exactly why prices will go down.

Incidentally, this also means you're going to have a lot of underwater landlords too.  That should make things doubly-interesting.

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