[UncleOxidant]

Arguably the 1980-81 era is a bit of an outlier, but perhaps instructive due to some of the similarities. The Fed under Volcker caused mortgage rates to rise to close to 20%. This was done to quell inflation that had proven persistent during the 70s. Back in '08 I recall looking at home sales data for my state (Oregon) during that era and there were quarters where the average selling price went down almost 20%. Of course, that's average selling price - it doesn't necessarily translate to home prices falling 20%, volume also fell (also consider that Oregon was very timber dependent then and there was suddenly a lot less home building going on). I suspect we'll see mortgage rates this time around hit 8% which really isn't an unusual rate historically, but given current prices that kind of rate will cause disruption. Bottom line: wait for rates to go higher - prices will fall. You can refinance the mortgage after rates go back down some, but I wouldn't expect to see 3% 30 year mortgages for a long time.

[whiplash451]

Timing the market is risky. Nothing guarantees that things will pan out the way you describe + your reader might be throwing money down a rental drain unless they buy.