Quote:
Originally Posted by phikappapsi
Logical flaw... As interest rates go up, inflation does too... So even if rates would pressure home values down, inflation pushes home values up. So if you can leverage debt in today's dollars at 3.5% and rates go back to the 7-9% range which is a historic average, youre basically earning. 5+% untaxable dividend, even before the home itself rises in value.
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But with inflation you also get appreciation on pretty much everything, houses and cards.
In general, interest rates and housing prices go in different directions. It sounds counterintuitive but the best time to buy a house may be when interest rates are very high, and housing prices low. Then when the rates go back down and the house prices are back up you refinance. N