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Politics : PRESIDENT GEORGE W. BUSH
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To: Wayners who wrote (660174)11/14/2004 2:12:12 PM
From: DuckTapeSunroof  Read Replies (1) of 769670
 
"Seems to me rising interest rates decrease the value of homes as demand for higher mortgage suppresses demand,"

I don't think that higher mortgage rates DIRECTLY reduce the value of houses --- but it may cool the demand for them.

"but the inflationary aspect on home construction materials prices makes values go up."

Just because the COST of new construction goes up, doesn't always have to mean that the selling price of existing homes goes up in lockstep --- only demand changes can do that.

"I guess you have to look it in constant dollar terms. I just want to know if the cost of a home is going to go up or down if one pays CASH for the whole thing."

That may affect your individual potential for profit or loss... but it won't affect the market price of a house.
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