you must have gone to the same economics kindergarten class as o.c.16
Low interest drive demand and that determines repayment amounts. I will spell it out for you.
Low
Interest Rates
Mean
Lower
Repayments, and
Lower repayments
Mean
People
Can
Afford to
Borrow more
And when people
Borrow
More
They are prepared
To pay more
Therefore........house prices go up.
Conversely in the 1980's when interest rates went sky high, house prices plunged because no-one could afford the repayments. This is John Maynard Keynes stuff. Go check out his famous 4 graphs on economics.
