More gloom: If you look at US demographics, Boomers are moving into retirement. The rational thing for them to do is move their funds out of anything with medium or higher risk - so the giant pool of available money, searching for marginal returns is shrinking. I read this to mean that interest rates aren't going to go 'way back down.

Back when my wife and I bought our first house (mid 80s) mortgage interest was well north of 14%, even with a 25% deposit. My take then was that interest goes up and down - we can remortgage when it drops - but there's no changing a price already paid. That was true then, but I think it might not be now.

I wish I saw a way out of this - I'd love to be back in a situation where a median income family could afford even a starter home, although (even more gloom, sorry), given that prices are dropping, It's not clear 'starter' means what it used to mean. Sigh...