<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>Sohcahtoa82</author><text>&amp;gt; you think people are going to pay mortgages they are massively underwater on?&lt;p&gt;Yes?&lt;p&gt;Why wouldn&amp;#x27;t you?&lt;p&gt;It seems pretty short-sighted to just put your arms in the air, give up, get foreclosed on, lose your home, and have your credit be absolutely wrecked for the next 7 years.&lt;p&gt;Just keep making your payments and ride it out.  The market will eventually recover.&lt;p&gt;I think the only reason to give up is if you fell for the scam that is an adjustable-rate mortgage and your payments are skyrocketing and you can&amp;#x27;t afford it anymore.</text><parent_chain><item><author>ren_engineer</author><text>you think people are going to pay mortgages they are massively underwater on?&lt;p&gt;This also ignores the fact that the Fed&amp;#x27;s stated goal with raising interests rates is to increase unemployment to slow inflation. You are already seeing the results in quarterly financials. Once layoffs start happening people won&amp;#x27;t have an option but to sell when they can&amp;#x27;t make payments</text></item><item><author>khuey</author><text>A lot of people simply won&amp;#x27;t sell in that situation which is going to further constrain supply.</text></item><item><author>rossdavidh</author><text>If rates go from a low of 2% up to, say, 9%, then in order to keep the mortgage payment the same, the price of a $400,000 house would have to drop to around $230,000.  This assumes a 30-year fixed rate mortgage, and the details will vary depending on money down, etc. but the basic fact remains that house prices will need to fall by a lot, down to levels of 5 years ago or more, before the current interest rate hiking cycle ends.&lt;p&gt;I don&amp;#x27;t think most people who invested in housing in the last couple years, are ready to believe that yet.</text></item></parent_chain></comment><story><title>U.S. mortgage interest rates jump to 7.16%, highest since 2001</title><url>https://www.reuters.com/markets/us/us-mortgage-interest-rates-jump-716-highest-since-2001-2022-10-26/</url></story>
<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>kotlin2</author><text>In most states, lenders have recourse. So if you stop paying your mortgage, the bank will foreclose on your home and then come after your other assets to make up the difference in what you owe vs. what the home is currently worth.</text><parent_chain><item><author>ren_engineer</author><text>you think people are going to pay mortgages they are massively underwater on?&lt;p&gt;This also ignores the fact that the Fed&amp;#x27;s stated goal with raising interests rates is to increase unemployment to slow inflation. You are already seeing the results in quarterly financials. Once layoffs start happening people won&amp;#x27;t have an option but to sell when they can&amp;#x27;t make payments</text></item><item><author>khuey</author><text>A lot of people simply won&amp;#x27;t sell in that situation which is going to further constrain supply.</text></item><item><author>rossdavidh</author><text>If rates go from a low of 2% up to, say, 9%, then in order to keep the mortgage payment the same, the price of a $400,000 house would have to drop to around $230,000.  This assumes a 30-year fixed rate mortgage, and the details will vary depending on money down, etc. but the basic fact remains that house prices will need to fall by a lot, down to levels of 5 years ago or more, before the current interest rate hiking cycle ends.&lt;p&gt;I don&amp;#x27;t think most people who invested in housing in the last couple years, are ready to believe that yet.</text></item></parent_chain></comment><story><title>U.S. mortgage interest rates jump to 7.16%, highest since 2001</title><url>https://www.reuters.com/markets/us/us-mortgage-interest-rates-jump-716-highest-since-2001-2022-10-26/</url></story>