The Impact of Interest Rates on Real Estate
Interest rates play a crucial role in the real estate industry. They can have a significant impact on the affordability‚ demand‚ and overall health of the housing market. In this article‚ we will explore how interest rates affect the real estate market and discuss the implications for buyers‚ sellers‚ and investors.
1. Cost of Borrowing
One of the most direct ways that interest rates impact real estate is through the cost of borrowing. When interest rates are low‚ it becomes more affordable for buyers to take out a mortgage and purchase a home. Lower interest rates mean lower monthly mortgage payments‚ which can make homeownership more accessible and increase demand in the housing market.
