Your example is the opposite of the current situation. If we assume that home prices are determined by monthly payment then that would explain why the price inc

Your example is the opposite of the current situation. If we assume that home prices are determined by monthly payment then that would explain why the price increased as rates dropped. Then you had a low price to rent compared to payment to rent ratios. Today you have the opposite: low payment to rent and high price to rent ratios. If rates rise with prices drop?