Traditionally the relationship between interest and houses is that when interest goes down the demand for houses goes up. And refinancing helps increase cashflow for households. And when interest goes up the demand for houses goes down and so do prices. We are at zero interest rate. What happens to housing when the pendulum swings the other way and interest is jacked up so fast it makes Volker's head spin? An $800,000 house can be had for $400,000 at zero interest rate. At 12% interest will it be $200,000?