Nimrod103 wrote:But the only significant house price drop in both graphs (which start in 1995) occurred at the point where the real mortgage rate changed direction to an upward trajectory.
Heres one from the US, in 2010 prices of both house prices and interest rates fell at the same time:
https://cdn.theatlantic.com/media/mt/bu ... -56453.png
Since 2010 they have gone back up, so I think the thing is: there is a strong link between the two, but it is not immediate, a lot of people are on fixed rates and don't need to move, so they can just ignore market changes for several years.