YHK - yet another hacker news clone

It really depends, and its hard to saw what "low" vs "high" rates means. Within different economies, low could be 0, 5, or 10. Depending on where you are in the business cycle, high rates could actually signal a hot economy and low rates could mean a cold one(or trying to jump start borrowing). Low rates all the time and high rates all the time probably isn't good, its a dance.

You've got it backwards. Over a standard business cycle, a healthy, growing economy is generally correlated with higher (or rising) interest rates, while a weak or contracting economy is correlated with lower (or falling) interest rates. Bond investors demand higher interest rates when they have more confidence in the economy as they would otherwise prefer to invest in equities, and investors settle for lower rates when they have less confidence in the economy as they seek to exit equities in favor of low-risk alternatives.

Higher rates will bring prices down. Prices can only support what incomes can support at current cost of money, wages + mortgage [based on qualified mortgage underwriting guidelines] = prices. Asset prices are inversely correlated with interest rates. ~4M real estate transactions occur per year, sales will happen because of moves, death, divorce, etc. This sets the price direction momentum and comparables at these money costs.

Home Prices Are Starting to Fall in Some Pockets of the U.S. - https://news.ycombinator.com/item?id=50203248 - October 2026

Stubborn Sellers Are the Last Thing Propping Up Home Prices - https://news.ycombinator.com/item?id=50096330 - October 2026

https://news.ycombinator.com/item?id=50203261

("Note the trend. Just as the Fed drains M2 with quantitative tightening, time is needed to drain inflated residential real estate equity, grounded in mortgage rates (priced off of treasuries) and what wages can support.") (me, 7 months ago)

https://news.ycombinator.com/item?id=47596362

(tangentially related to how private equity is in a very unfavorable position at current valuations and continues to extend and pretend as long as possible before having to mark to current valuations)

A $300B 'Debt Wall' Is Looming over Private-Equity Backed Companies - https://news.ycombinator.com/item?id=50260526 - October 2026

https://news.ycombinator.com/item?id=50262716

- “PE has a glut of 32,000 companies ($4T in equity) they can't sell and the average hold time is extended past 8 years.”

In hindsight, it was not a good idea for the Fed to provide unlimited support to mortgage backed security bonds during the pandemic. All of that money flowed from the bond market into unsustainable real estate equity valuations that are now readjusting to reality through time and transactions. Alas, we win or we learn.