re: Fed potentially raising rates

quote:

---

So for instance ive been watching the North Dallas housing market the last 18 months and people are paying out of their butt's for homes that were valued @ 250k being sold @ 375k. Now I am aware a portion of the reason for the inflation of prices is due to demand and new money rolling in, but it got me to thinking about these folks who have already bought and if indeed the market falls, they are literally stuck in a home they can't leave.

---

That would be a function of a bubble in that market, not so much the interest rates. Even if they raise rates, the change required to price those people out of their own homes would happen over the course of years. It's not like the fed will raise rates in Q4 and home prices will drop 100k overnight.