[alkonaut]

The diagram misses an important factor: normal interest level the last decade(s) and typical length of mortgages.

The worst is what I have where markers have been considered so low risk that we have interest/-only mortgages or 100 year mortgages with ~1% interest. That makes no difference to the cost of the mortgage but it drives up the prices and means buyers take a lot more risk because a monthly $2k (say) is now a $1M instead of a much smaller figure somewhere where mortgages are 30 or 50 years and interests have central bank rate plus more than one percent.

At least I fixed my interest rate at 2% for 5 years just now. But I fear it’ll be too short.