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Rate drops will make things way less affordable, it’s exceedingly obvious. If a borrower pays less in interest, the seller can ask for more money and the borrower will end up paying the same monthly payment, meaning higher home prices.

This isn’t rocket surgery, it’s Econ 101.

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Very true. Rate drops have historically caused demand-side pressure (because more people can now afford the mortgage) which subsequently caused home prices to surge (20% during Covid!) despite no capital or material improvements to the homes or properties to justify the higher "value".

do you mean affordable by sticker price alone? trying to square way less affordable with same monthly payment (which i would expect by way of the seesaw between interest cost and house cost). i guess it also matters which the consumer is more responsive to...

Yes, affordable by sticker price, and for first-time homebuyers specifically. It matters less if you own property that has increased in value along with the rest of properties.

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