[barneysversion]

> If you are projecting a receding economy and/or decreased demand for the land you are buying, then it does not make sense to pay as much as you can afford...

I think this is the above commenter's concern; homebuyers are not adequately pricing the risk of rising interest rates. If interest rates go up, demand falls and you're left in a highly leveraged position that amplifies your losses. Monthly mortgage payments don't make the leverage apparent. Sticker price does.

[game_the0ry]

Bingo.

> If interest rates go up, demand falls and you're left in a highly leveraged position that amplifies your losses.

There is a reason why debt is called “leverage” - it leveraged investment returns up when your the exit works out.

But it also leverages return losses down when the exit doesn’t work out.

[jbjbjbjb]

But if you go one move deeper central bankers will factor the high leverage in and therefore won’t increase rates.

[game_the0ry]

In order for central banks to mitigate future recessions, they need be able to make rates go down too, not just not increase them. And when rates increasingly approach zero, there won’t be much they can do, except buy the assets - which they have done and are not supposed to.