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1 point

You don’t understand. With high interest rates, no one wants to move because their home mortgage will be higher even on a smaller place.

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You don’t understand. If you own your home why do you need to move? And if you do need to downsize how will higher rates increase the burden if the principle is decreasing? Do you have a degree in macro economics? Because I dont

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2 points

I just explained it to you:

People have children and need to get a bigger place. Or their children grow up and move out, so they downsize.

Yes, higher rates will increase your payment even if the principal is lower.

A $300K 30 year mortgage (paying 20% down) at 3.25% costs $1044 per month. The same mortgage at 6.25% costs $1477 per month. 15% is $3034 per month. At 15% you can afford half as much house as at 6.25%, and a third as much as 3.25%

https://www.bankrate.com/mortgages/mortgage-calculator/

Also, you will get less equity for your house when you sell because other people can’t afford a larger loan (because their payments go up too). That’s the purpose of high interest rates; they prevent people from borrowing money.

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