EJ, straighten me out on this. Are not housing prices fixed on the monthly ability to pay? (I'm foregoing actual construction cost in this question. Existing "previously owned" housing stock only, not developer's on-hand supply.) Then would not a raise in interest rates see an accommodating lowering of pricing to maintain the sell-able monthly amount? Do not near-ZIRPs help to keep housing prices artificially elevated? In an iTulip essay from a few years back that point was quite clearly made....