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What rising interest rates mean for you


Are you waiting to buy? You are not alone. Everyone wishes they had a crystal ball as we watch the housing market.


And Interest Rates are on everyone's mind.


But what impact do they have on the housing market? And what do we as investors need to know?

Listen to this week's episode of the Lady Landlords Podcast here to learn how interest rates will impact you.

Here are quick facts to know about rising interest rates:

1. Dropping housing prices:

Often when interest rates are raised, it is to control inflation and the cost of goods. This includes properties too. Over the past few years, we have seen housing prices climb with no end in sight. And people can only afford so much. But, raising rates are the way to combat that. Some markets have started to see prices drop while others see properties sitting on the market longer than before. Might this be an end to bidding wars?!

2. Less house for the same amount of money:

The trade off to higher interest rates and lower housing prices is that you will have more of your monthly payments going to interest now. Your payment might be the same as if you bought before rates increased, but now instead of getting more house for your buck, more will be going to the bank. (Learn more here on our YouTube Channel) This will impact homeowners more than investors though. We need to make sure to capture the new rates into our analysis. If the deal still works, go for it!

3. Increasing rents:

The average person buying their forever home will be affected the most by this. With more money going to bank and their decreased purchasing power to buy a home in their budget, many might decide to stay as renters. This will continue to drive up demand for rentals and keep prices at an all time high. Sounds like a good time to be an investor!

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