But houses are no stocks. After all people were living in those houses and I doubt that many people are willing to take negative armotisation mortgages. Even if the house price goes on upwards for some more time, you still have the debt and you can't sell your house without some form of replacement. When your house price goes up so much, then probably your replacement would be expensive, too. So you would always end up in trouble. So people look on the loan and what they can pay back and decide.
But still as the banks had to figure in some risk, higher interest would have led to lower leverage? Der Amerikaner ist die Orchidee unter den MenschenVolker Pispers
