Hello fellow Rebel capitalists hope you're well so everybody has been talking about higher interest rates more specifically

mortgage rates going above 8% and how that could create the catalyst to where the housing bubble will pop.

Well, I think it's already popped in real terms, but in nominal terms how you could really

start to see the prices come down.

But I don't think that's the big story.

I think the bigger story is all the other things that are involved in home ownership

that would force someone to sell that property that they don't want to sell because

they've got equity and they've got that 3% 30-year fixed-rate mortgage. That's kind of the holy grail

that everyone is talking about

as far as the supply side bulls in the real estate market.

That's what they always go back to.

Well, no one's going to sell their house

because they're locked into this 30 year

fixed rate mortgage and if their job goes up in nominal terms and they don't have to

worry about it because their debt or that mortgage payment monthly is at a fixed

set amount.

But what they're missing is everything else

other than the mortgage.

It's like the mortgage is the only part of the equation

for these economists. In fact fact I was just listening to a

podcast where they are talking about the real estate market and that's literally

the only thing they discussed. So let's get into some another story here from Yahoo that I think hits the nail on the head.

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