The KEY to real estate is that when interest rates tank, the PRICES of homes go up.  Why?  Because people buy on monthly payments.  If the payments are cut in half as they were (from 8%+ to 4% or lower, you can afford more house.)  So the prices increase naturally.  If the sale is on in the store for an item and it is now 2 for the price of 1, people will buy two of them.  Same thing for homes.  People refi the loan, and cut their monthly nut in half.  Or, they refi out and take some money and invest it.  When rates go up, prices go down.  If the rates went to 10% like in the 90's, the price of housing would go down dramatically because people could not afford the monthly payments.  It is simple math.  People buy on monthly payments.  They buy what they can afford. The rates are rising now, so the price of housing will go flat or decline in the next year.  The key is to buy when rates are high, then refi when they drop. That way you buy low and your payments are low.  Simple logic.