Though rising interest rates offer hope to people like us to work our asses off to earn 100K+, pay half of our salary in taxes, yet can't afford house in London.
I hope the house prices crash to a reasonable to income to price ratio.
All a decade of low interest rate has achieved is wealthy folks borrowing money to invest in houses and shitty companies that rely on government loans to fund.
I doubt the big shots will let the housing market crash. The falling property prices are promoted as a negative in the media.
In Germany they're already propping it up to keep it from crashing because big real estate firms demand they can't loose and their political pawns will comply.
https://www.reuters.com/markets/europe/struggling-german-pro...
Last year I believed interest rates would never rise to a level that would cause stock market crash but it happened. It was faster in the US but BoE also reluctantly is raising & market now pricing in 6-6.5% terminal.
Last year, I also believed Liz Truss would get away with 150B of energy subsidies by borrowing away. Because most politicians in the last decade have indeed got away with it. Rishi Sunak as FM spent 400B on furlough, covid loans and eat out to help out (idiotic idea imo). BUT, she didn't.
These events have changed my beliefs. Math is never wrong, just that sometimes market is so complex and economy goes through cycles that it seems illogical but eventually, it will all even out.