It’s time to share my Three Cents Worth (3CW) on Curbed NY, at the intersection of neighborhood and real estate in the capital of the world…and I’m here to take measurements.

Check out my 3CW column on @CurbedNY:

Mortgage rates are rising and that’s probably a good long-term thing for the housing market in NYC and nationwide. One of the biggest misunderstandings about the market is the correlation between mortgage interest rate and price trends—sometimes I’ll get caught up in it myself. The logic follows that rising mortgage rates will leave less room for principal in the monthly housing payment and then prices fall. Makes sense logically if you don’t factor in access to credit. In the short term, changes in mortgage rates may have some knee jerk impact on prices—we often see demand surges with sudden rate changes—but over the long term it’s hard to pin down the cause and effect relationship between rates and prices using actual data. It’s never been successfully correlated to my knowledge…

[click to expand chart]


My latest Three Cents Worth column on Curbed: New Developments Cross Luxury Threshold [Curbed]
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One Response to “[Three Cents Worth NY #238] New Developments Cross Luxury Threshold”

  1. Henry Roth says:

    I was one of the people who believed a correlation between the mortgage interest rate and price trends. Thanks for clarifying that for me and I enjoyed the post.