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The argument that Jim Watkins makes, that higher rates will lead to lower prices is based on logical assumptions and intuition that home buyers will act rationally, and primarily for economic reasons, that they will sit down and calculate the math, then follow through accordingly, en masse.

The Forbes article states that there has not been a correlation between rising interest rates and falling home prices.

I will go with the data since I have to choose between Watkins theory of a direct causality inverse correlation between rates and prices and the historical data that refuses to support his theory.That leaves me to think that other factors are more important than the correlation that Watkins claims.

Consumer confidence, job stability, and wage growth are some of the other factors.Human beings aren't rational economic actors.

One factor that can contribute to price growth is housing.

This is a good motivator for move-up purchases.A homeowner, might feel trapped, with little or no equity when his home is worth a $100,000, and a loan balance the same size, won't or can't consider buying a more expensive house because he has nothing for down payment or reserves, even if his income would support the higher mortgage payment.He can now shop for a much more expensive home that fits his lifestyle needs and budget if his home value is doubled.

Jim Watkins would be right if he said that people aren't rational economic actors.We convince ourselves that we are rational when we comparison shop.We convince ourselves that we're logical and rational.

We don't want ourselves to be irrational, emotion driven consumers.We convince ourselves that our decisions are logical, even if they aren't.

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History — History[edit]. The school was opened in 1969. . The first headteacher was Bill Dally. . He retired from the post in 1982. . An extension was ."Established: 1969"Head teacher: Debbie Smith"Age: 11 to 18"Houses: Bailey, Gemini, Romer, and Young"History · References

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