Developer · Union Point, MA · Member since 2015 · 63 posts · 31 votes
As most people borrow money to buy property higher rates mean buyers can’t pay as much, so real estate prices fall across the board.
In very simple terms, if a rental property can support a mortgage payment of $3,000 per month, that’s enough to buy a $827,000 house (assuming a 20% down payment) if interest rates are 3.5%.
But if rates rise to 5.5%, that same $3,000 per month only buys a $654,000 house.