[CoffeeDregs]

I think the rationale is: You don't want to be holding an asset who's value is predicated on a very low interest rate loan. If mortgage interest rates go up by a factor of two, housing affordability will come down by a factor of two (assuming an interest only loan). Better to sell now, pocket the money, then buy back in when prices are lower.

[shostack]

Isn't that in essence trying to time the market?

[jonknee]

On the other hand it is buying low and selling high. It's a fool's errand to try and sell at the exact top (or buy at the exact bottom), but if you're already up nicely you have done the hard part.

[shostack]

Sure, but you're still trying to time the market.

[hiram112]

Yes you are trying to time the market but interest rates cannot go any lower, literally.

In hindsight, it will have looked obvious.

[shostack]

Actually, they can go negative like Japan. Which I guess would push asset prices even higher?