home buyer bias: Is there “ Normalcy Bias” with Mortgage Interest Rates?
- 11/22/16 02:32 PM
If you look up the term “normalcy bias,” you find yourself swimming in psychological theoretician talk, most of which deals with people’s response to disastrous situations. The theory behind it is that when faced with the unknown, there is a tendency among even rational human beings to misconstrue new (and even dangerous) circumstances as being more normal and safe—than is often the case. How this relates to the current real estate market is not as farfetched as you might think. Ask anyone who wanted to or bought a house in the early 1980s, and my guess is you will probably get an earful. (0 comments)