Why is the US housing market not crashing? Interest rates are up, which means more expensive mortgages, which should push down demand. House prices are already falling in other countries, by nearly 9% in Canada and 16% in New Zealand. A map from UBS shows that , worldwide, many urban housing markets are bubble territory.
See Also
A 30-Year Trap: The Problem With America’s Weird MortgagesGetting a Mortgage in Your 50sHousing Finance Fact or Fiction? FHA Pioneered the 30-year Fixed Rate Mortgage During the Great Depression?What Is a 40-Year Mortgage and How To Get One? | LendingTreeBut in the US, prices have barely budged. The explanation is straightforward if not exactly simple: the 30-year mortgage. It is a financial product that should not exist — and it may well be the only thing keeping the US housing market from collapse right now. 1
