Back in the 1970's a 12% interest rate on your mortgage was considered pretty good!
It basically reduces buying power for real estate. Using the google mortgage calculator and assuming a $1500 max monthly payment.
At a 3.92% (today) rate you can borrow ~$320K
At an 8% rate you can borrow ~$200K
A 38% decrease in buying power. It's already happening in Canada as the gov't is trying to slow down the real estate market by making buyer qualify at a rate 2% higher than what it is today.
It basically reduces buying power for real estate. Using the google mortgage calculator and assuming a $1500 max monthly payment.
At a 3.92% (today) rate you can borrow ~$320K At an 8% rate you can borrow ~$200K
A 38% decrease in buying power. It's already happening in Canada as the gov't is trying to slow down the real estate market by making buyer qualify at a rate 2% higher than what it is today.