[hunterrrrrr]

> 1. You often can't get a mortgage on the same terms so you often can't find equality between selling a home and buying a home.

When interest rates fall the value of the asset goes up and the cost of borrowing the same amount of money has gone down

[robocat]

I don't look at the housing market like that - causes and effects are not obvious.

Firstly, people can afford to pay $x for mortgage interest. The "cost" of borrowing remains constant because incomes don't change. As mortgage interest rates decrease, $x doesn't change. Instead people can borrow more (for the same amount spent on interest) and they bid more. So house prices go up.

[hunterrrrrr]

If I can take the profit on one and roll it into buying down the disposable income needed to afford a loan on another - which I can do in a falling interest rate environment - there should be not only a point of equilibrium for my relative purchasing power but also theoretically there will exist a point in which simply owning an appreciating asset would have been enough to have parity with whatever my overall purchasing power was, minus the asset. It’s the same function with the same saddle point.