alt Hacker NewsThis is a one-time effect, though. Or at least, an effect that only changes periodically (and should reverse) when interest rates change. 30-year mortgages have been standard in the US for most of my life, and houses have gotten a lot more expensive during that time.
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Retric • last Tuesday at 11:50 AM
Mortgage loans have been getting cheaper due to automation and the commoditization of loans / increase in surplus capital.
That then pushes up home prices over time relative to inflation.
The effect may pause when interest rates change, but it's unlikely to reverse significantly. People who have homes now aren't going to want to sell for less than they paid for them, so there's a lot of inertia against prices going down.