What impact do rising interest rates have on real estate?.

Rising interest rates generally lead to higher mortgage costs, reducing home affordability and potentially slowing down property sales. This can result in a cooling effect on housing prices as demand decreases. Conversely, some investors may seek opportunities in lower-priced homes, creating a mixed impact across different market segments. Additionally, increased rates may drive more renters into the market as buying becomes less accessible, thereby boosting rental demand. Overall, the effects are multifaceted, influencing both buyers and sellers in various ways.