LOL a better assumption over a large non-tech area and long term is the median wages are permanently dropping, not holding steady or rising.
That has a certain effect on the dollars that will be available for monthly housing payment even if interest rates are dropping. Look at, say, Detroit.
If you want to clear a market, supply and demand insists that the median income dude will live in the median quality house. All the interest rate controls is given the median dude's fixed (dropping) monthly housing budget, how much of a reward does the previous owner get from the check the bank cuts for the new owners mortgage?
LOL a better assumption over a large non-tech area and long term is the median wages are permanently dropping, not holding steady or rising.
That has a certain effect on the dollars that will be available for monthly housing payment even if interest rates are dropping. Look at, say, Detroit.
If you want to clear a market, supply and demand insists that the median income dude will live in the median quality house. All the interest rate controls is given the median dude's fixed (dropping) monthly housing budget, how much of a reward does the previous owner get from the check the bank cuts for the new owners mortgage?