Hacker News Reader

I don't see it. I looked into moving this year, house prices have stayed flat in my area and haven't gone down. rates are double my current, and house prices are huge. a move for me would mean nearly 30% increase in monthly payments for a comparable home in a comparable location. we opted not to move and will try again in a few years

View on HN

Housing prices may not have gone down - but absent rate increases they would have gone up.

So then buyers aren’t getting houses at the same monthly payment at a much lower purchase price than otherwise.

Yes, in the short term, monthly rates have gone up due to the time it will take for the benchmark rate to push asset prices down. Eventually (at least that's the idea), unaffordable monthly payments should come down to affordable payments as sellers are forced to accept lower prices due to what wages can support. Increased supply would help, which is why if you must buy, new construction is preferable to used homes. New builders must sell what they build to remain in business, existing real estate owners can afford to wait (some longer than others).

Reply on news.ycombinator.com