How Interest Rates Can Influence Real Estate Prices
How Interest Rates Can Influence Real Estate Prices
Interest rates also have a major impact on the real estate markets. Changes in interest rates can greatly influence a person's ability to purchase a residential property. That is because as the interest rates fall, the cost to obtain a mortgage to buy a home decreases, which creates a higher demand for real estate, which pushes prices up. On the other hand, as interest rates rise, the cost to obtain a mortgage increases, thus lowering demand and prices of real estate. Take this into consideration as you go out to do your investing. Keeping an eye on the current rates can help you to watch the values of properties as well.
How Interest Rates Can Influence Real Estate Prices
Interest rates also have a major impact on the real estate markets. Changes in interest rates can greatly influence a person's ability to purchase a residential property. That is because as the interest rates fall, the cost to obtain a mortgage to buy a home decreases, which creates a higher demand for real estate, which pushes prices up. On the other hand, as interest rates rise, the cost to obtain a mortgage increases, thus lowering demand and prices of real estate. Take this into consideration as you go out to do your investing. Keeping an eye on the current rates can help you to watch the values of properties as well.