People were discussing raising rates in 2010. That’s actually when I did all the research before deciding to buy, because prices weren’t going to decrease when rates went back up.
Inflation hasn’t dictated a rate increase. Wage growth has been minuscule during the time. We’re just now starting to see positive movement in wage growth. As long as rates are lagging wage growth, it will hold true. If they raise rates faster than wage growth, then it could break from history. I don’t see that happening though, because we don’t get inflation without wage growth.
We’re looking at 3-4% wage growth and 0.75% interest rate hike. 3-4% on a bay area $200k family is $6-8k/yr income growth. 0.75% higher rates is $7500/yr interest on $1M loan. They can afford the higher payments.