Real Estate Agent · Baltimore, MD · Member since 2014 · 215 posts · 123 votes
I just finished reading an article from Bloomberg and of course everyone and their mom thinks that interest rates will go up soon (aka December)... So my question is, how will this affect me as a wannabe flipper and buy and hold guy? I mean I get that loans will have higher interest rates and that there will be less buyers able to purchase homes due to the higher interest rates but is that it? Does that mean I shouldn't get into flipping? Any flippers that can talk about how things where when interest rates were going up over a decade ago?
If interest rates were to go up a full point it is still virtually free money. Interest rates are WAY BELOW the long term averages. That said it is possible everyone will overreact.
I think the stock market is much more at risk than the housing market. A small uptick in rates could cause people to get motivated to buy before rates go higher.
In general interst rates go up do to inflation. Inflation helps real estate. Rents increase, values increase, fixed rate mortgages stay the same.