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Cheap Money Helped Inflate Home Prices. Higher Rates Can Force a Reality Check.

Opinion: Ryan Holt argues higher borrowing costs can challenge inflated home prices and speculative purchases, while warning that rates alone cannot fix affordability.

Cheap Money Helped Inflate Home Prices. Higher Rates Can Force a Reality Check.

Opinion Photo: Ярослав Алексеенко / Unsplash. Illustrative stock photograph; not a property or company discussed in this article. Higher interest rates are unpopular for a reason: borrowing costs more. But a real estate market that depends on cheap debt to justify expensive homes has a deeper problem than its mortgage rate. My argument is simple. Higher rates can restore discipline to a market that has confused easy financing with value. That does not mean every rate increase is good, or…

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