[wildcard_redneck]

And as mortgage interests goes up the housing prices must fall.

[Tell It Right]

Both of you are spot on about housing prices having an inverse relationship with interest rates.

So if you're a home buyer, how do you play it? The best way is to buy when housing prices are down, even if it means a relatively high mortgage rate. Get a 30 year mortgage.

Then years later when rates go back down get a refinance. And you'll have the best of both worlds: both a low mortgage balance and a low rate. But you can't have both if you decide to buy while prices are high. You can't refinance away a high balance.

[Theoria]

No guarantee on that one. Gen x, y, z etc get to compete with people who have cash. Wealthy individuals, hedge funds, foreigners, sovereign wealth funds.

Globalized safe havens like the US, for now adds to speculation. Canada housing is even worse in multiple areas because of the flight of wealth from China, etc to there.