Interest rate changes and mortgages: Let's say that there is only one type of home buyer in the world. This person goes to the bank and borrows as much as they can, based on having to repay exactly $1,000 per month. Let's also assume that everybody takes out 30 year mortages. If the interest rate goes up (let's say from 4% to 5%), what impact is that going to have on housing prices? (i.e. how will this affect the amount that people be able to afford to pay for homes today?) I don't need the exact numbers -- just the direction of the change and the reason