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baggy_trough

7% is not unreasonable by any stretch of the imagination.

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Do the math and tell us the income you'd need for a $1,000,000 house at prime.

It's unreasonable. Pay a loan to term one of these days and you'll see why.

Don't buy the $1,000,000 house if you think it's too expensive.

It's only (over)priced that way because rates were low and prices haven't adjusted to current rates yet.

I don't think those are the only reasons house prices are high now.

Why don't you try telling the whole truth.

House prices are high because governments are printing money like mad.

You're right I shouldn't have said "only", but in my opinion it's the main reason. And of course there are several reasons rates move.

When rates were around 3% not so long ago, the monthly payment on a $1M loan was around $4k. Now at current rates the monthly payment is closer to $7k. As a buyer, that's pretty hard to shrug off. It ends up eliminating entire classes of buyers just like it added them when rates were going down.

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