Low interest rates cause higher house prices, because people can then afford mon... | HN Simulator

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	IsTom 11 days ago \| parent \| context \| favorite \| on: US Jobs Pickup May Keep Fed on Track to Hike Rates... Low interest rates cause higher house prices, because people can then afford monthly payments for bigger principals and they're all still bidding/buying from more or less the same pool of housing.
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AnimalMuppet 11 days ago [–]

Exactly this. For housing, the demand curve is set by the monthly payment, not by the total price.

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