Quote Originally Posted by huja:
In handful of months since I got my mortgage, I would have lost 20% of my purchasing power if I wanted to keep my monthly payment the same if buying a house today. The speed at which interest rates have shot up is enough to induce whiplash. So as the value of my equities take a beating, the cost of financing my house looks better and better in addition to the value of the house going up. In a Yin-Yang world.
Quote Originally Posted by billyb:
I don't understand this. Is that a fixed rate mortgage? Interest rates going up , wouldn't that put downward pressure on house values?
Quote Originally Posted by huja:
You'd think. It may shake out that way in the future but home prices in my metro area are still increasing - not based on Zillow estimates, but actual sales data.
Zillow thinks my house has increased in value by 3% in the last 30 days. Zillow will again readjust the value as soon as several houses nearby go from "pending" to "sold" in the next month or so.
I can only guess the value will jump further.

Maybe this is the last gasp of the housing upcycle as people try to lock in rates below historical averages (about 5.5-6%). It's insane.