Interest rates affect the housing market far more than most people think. When interest rates rise, buyers see affordability tumble, pushing them out of the home buying game until they can build up more cash reserves. While this may seem like a blessing in disguise for interest rates to start heading up, it could have grave consequences for investors and homebuyers alike.
Dave Meyer (@thedatadeli) has been closely watching interest rates and bond yields to give an accurate forecast of when we may see rates start to climb. If you’re an investor, even a single-percentage bump on your mortgage rate could dramatically change your cash flow. If you’re a first-time homebuyer, these low-interest rates are allowing you to buy homes that up until last year were seemingly unaffordable. So, what can homebuyers and investors do to maximize their gains/likelihood of buying a home when rates start to rise?
Do you think rising interest rates could lead to a housing market crash/correction? Or, do you think it will merely slow down this hot housing market? Let us know your predictions in the comments below!
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How Do Interest Rates Really Affect Your Investments?
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