Tried to explain this to my Realtor last week - he did not understand (Patreon)

The interest you get from a 10-year note is now higher than what most people get from property investments. This is called the CAP Rate.  This hasn't happened since 2008.

This means investing in property is now less profitable than the 10-year note.

That's probably why there's a big 45% drop in people buying for investment this year.

If these rates keep going up, fewer people will invest.

Mortgage rates might reach 8% this week and could be 9% to 10% next year.

This trend won't last forever.