Question

How will a significant increase in mortgage interest rates to 10% impact the value of real estate?

Answer 1

The intrest rate rising may cause property devaluation because fewer people will buy homes, and they will set on the market. Thats the only way I see that the % rate could effect values, but then again maybe a mortgage/realtor type will have a better answer.

Answer 2

A lot less. Like 85,000, if even that high.

Answer 3

Rates do effect value to a certain extent. However, it depends on the situation where the property is located. For the most part, it is a question of supply and demand. Today's rates of 6.5% is still excellent. Remember 20%?

Answer 4

In general, new homes and home resale slows down with higher interest rates. This usually results in a proportional slowing in home appreciation. That is to say, the effect is the value of your house will not increase as quickly.

Answer 5

I don't think it has anything to do with the value of real estate just how eager people will be to buy real estate. It would also more than likely limit the amount of people who could afford to purchase the house with that interest rate.

Answer 6

it will effect the market temporary. Back in the 1980-1990 interest rates were at 12-15% and people were still buying/selling real estate. . . The industry works off a roller coaster curve. Think of like this, back in 2000-2003 intrest rates were at rock bottom. 5.25% on a 30 year fixed. Today avg. 30 year fixed is 6.50-6.75% and people are still buying and selling.