Comment on How house prices respond to interest rates depends on where they are in the country by Charles Fairhurst

28 Jun 2023

Danny, I think this an interesting research piece, but I suspect three aspects are critical: 1. Markets need sellers for prices to fall; I suspect there is a higher percentage of mortgage free homeowners in the areas you see at greatest risk, so less selling pressure. 2. Fixed rate mortgages are far more prevalent than pre-GFC, so interest rate increases will take longer to force mortgaged homeowners to sell. 3...

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Charles Fairhurst

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