What I don't understand is why people always come back to the...

What I don't understand is why people always come back to the age old saying, "house prices are more affordable now than the late 80's/early 90's because interest rates are much lower".

If you actually sit down and calculate the affordability you will quickly see that this is definitely not the case, actually you might be surprised at the results.

As I have said numerous times before, it's not the absolute number in interest rates that will have an impact, it's the differential when they start to rise that will be felt.

A 1% rise now will have more of an impact that 12-15 years ago.

Low interest rates mean nothing when debt is at an all time high.

Rcession?? Well maybe, particularly if most are trying to consolidate their debt and stop living the good life and being typical "debt" consumers.