Clearly, the 7% relates to the risk-free rate and not mortgage rates. I assume the 7% jokers mentioned came from Jamie Dimon's comments from earlier in the week.
The prime interest rate was what I referred to when I expressed surprised that jmkobers talked about a 7% interest rate.
The DCF rate needs to be in the right ballpark if you're trying to get to some realistic valuation.
LOL
IF you believe that picking the "right" DCFR will get a "realistic valuation", I've a bridge to sell you. A myriad of other assumptions, known and unknown will be far more important.
When the issue is which investment to pick among many choices, once you have your time horizon, it is not likely you will get different answers whether you use 4% or 8%.
Buffett counsels use of the Long Term Government Bond, currently a bit under 5%.