Rate accompli: Are rising interest rates bad for all assets?
Many Happy Returns
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Is the Pricing of the Market Driven by the Marginal Buyer?
I don't know that we've ever gone into a period of rising rates with such overvalued property though so I think it's no one really knows how it's going to play out. The other factor is the number of yield insensitive buyers because about a third of the properties in the UK are held by people who own the property outright. Now they don't really care if interest rates increase because they'll probably be able to move to a comparable property for very little mortgage or no mortgage. But isn't the pricing of the market driven by the marginal buyer? Sorry to get all economics.
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