The fed only rises rates when inflation is high. High inflation means home prices are going up.
I don’t disagree with you. Home price increases tend to build up a lot of momentum behind them and be hard to suddenly turn around (in fact you wouldn’t want to because it would create instability). Interest rates are like the 2nd derivative i.e. acceleration/deceleration. If the car is going 100 mph (on a freeway with a 65 mph speed limit) and you start to gradually tap the brakes it doesn’t suddenly go in reverse. We’re going to continue to make a fair amount of forward progress here and if they get it right settle right at 65.
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Is that a TSLA? ICE cars don’t go reverse when tapping brake.
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Inflation solidify home price stay at top level.
Yes, when FED knows (many ignorant people believe FED does not know anything about economy !) cracks are going to hit economy, they stop raising rate so that they can take control at worst period !
Seemingly right, but it does not work like this way. You will see year 2022 home prices shoots up sky high with increase in interest rate.
Marcus is right here, inflation increases home prices. Inflation solidify asset prices, holding same level or up raise level as inflation continues to grow (Money value decreases).
This is very common for all MV,SV,CU and RBA shacks. People are buying dilapidated shack homes with high cash down payment. Reason: No lender will give any loan more than replacement insurance values of shack homes.
This means 4M shack homes loan must be less than $750k (150% of insurance replacement value of home), and rest must be stock RSU/ESPP/Options…etc. In short, loan leverage is very low and defaults are very rare at MV,SV,CU and RBA areas. There is no reckless (or very less such) loans after 2008-issue.
This is silicon valley, any one holding espp/rsu would have original value $500k, but current value may be multi-millions by growth of AAPL, GOOGL, FB, TSLA…etc so many money makers. Silicon Valley (most USA) is stock economy. Real estate follows stock with bond value (hardness) with it.
Even if there is stock market dip next week, market keep going further bullish new ATH until the last rate hike of FED. Until then no homes in bay area coming down, but keep going up and up, never stops its growth. Entire stock market will come to an end 3 months after the last rate hike, then real estate shows max range 5%-10% as lot of the owners are high cash down payment homes.
Okay, as usual, I do not plan to reply any questions endless way. I saw really valuable/constructive discussion in this real estate forum after a long time, tried to add value to it.
Whether anyone believe it or not, it does not matter !
Good Luck again, going to sleep mode now.
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We’ll so rich that we 
both RTO and WFH, watch TV and blog incessantly.
Since last Sep, prices of 
in SV and Austin are racing at about the same rate.
and 5.56x of a new car in 1958.
It show Singapore House price/ income as 5.8. Thought is wrong. After some checking, I think the reference house is a subsidized HDB 4-room (S$260k-$380k)… similar built-in EC or private condo $1.5-$2M.
Foreigners = Chinese from China and Hong Kong. These group of people are also pushing up Singapore property prices to stratosphere.
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Has the Fed historically always announced their intentions to raise interest rates up a a year out like they are now?
I am interested in understanding the pyschology of knowing mortgage rates are going to be higher 6 months and how that affects demand right now. I would think that would increase FOMO right now and in spring/summer. But by fall, some of that could wane.
The typical market sentiment is hot during Spring, moderate in Summer, start to cool in Fall and cold in Winter. So how to tell whether what you say is seasonal or due to Fed uttered plan?
I can’t that’s why I’m asking you guys 
I’m not sure further rate hikes will increase mortgage rates much. Once people expect the hikes, then the bond yields move which moves mortgage rates. Just look at how mortgage rates are up 2% on a 0.25% rate hike. It’s the expectation that the other 1.75% will happen. It’d be irrational to buy 10-year bonds at the current rate knowing the number of rate hikes that are coming in the near future.
I’m sure some buyers are were trying to buy before rates increase. Now that rates are higher I think the more important impact is on inventory. People with 3% mortgages aren’t going to sell to buy with a 5% mortgage unless there’s something else happening. If people though inventory was tight before, it’s about to get worse.
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