this post was submitted on 06 Jun 2026
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me_irl
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That's just not true. To buy my house right now on a 12% loan for 8 years, the monthly payment would be $10,000. If someone were to buy it right now on a 6% loan for 16 years (trying to match your numbers to the current state of the market), their monthly payment would be $5500. And they'd pay just a few thousand dollars less than I did in interest. Why? Because prices went up along with interest rates. For what you are saying to be true, prices would need to drop when interest rates go up, but that isn't the case. Most people can't afford to drop $10k a month on a loan just to save a few thousand long-term, let alone $5.5k. My monthly payment is less than half that.
If you take out a loan at 12% today well then you're an imbecile.
If rates go up to 12%, then housing prices will go down because as you yourself just showed (!), it's too expensive to buy at todays prices. So they will go down. If that happens.
Nothing spectacular in the housing market will happen just because you throw money out the window.
That's why I ran it with today's numbers as well. You talk in hypotheticals that just don't reflect the behaviour of the current market.
I'm talking about housing economics, not like what's the current loan cost. The current market is what it is today, buy what you have the financial possibility to buy.
But if rates go up wildly, I'm gonna repeat this once again, then housing prices will go Down.