[jmoak3]

I think you have it backwards since prices really haven’t moved enough to counter the rate hikes. Monthly payments are still up 50-75% depending on the home and area compared to Q1 2022 while prices are mostly flat. This means that homes are currently priced at 3-5% rates but currently feature 7% rates.

Today’s buyers implicitly expect to be able to refinance sometime soon - without that expectation prices would be far lower.

If rates at 7% is our new normal then people buying homes today are far overpaying and they will be disappointed in a year’s time.