In 2021, with a 20% down payment on a $404k house, mortgage of $326,772. Payment is now $1377 with a 3.0% rate.
If rates go up to 5% , $1377 a month only gets you a $256,500 loan.
At 7%, $1377 a month gets you a $207,000 loan.
So what do yo think is going to happen to housing prices and the equity in that $404k house if that happens?