2006-06-09 08:24:41 · 4 answers · asked by Thunderbird Clan 1 in Business & Finance ➔ Renting & Real Estate
That is a possibility. One thing that I can be pretty certain of, is that the increase will narrow the gap between rents and housing prices. How this plays out will probably depend on the market. In severely overheated markets like South Florida Condos, I think a bubble burst is pretty likely. In areas that have seen below average appreciation, the change will be less dramatic.
The toughest prediction to make is what will happen in desirable markets that have seen big increases. Incomes will probably support some degree of increasing rents. Will housing prices drop or flat-line is the question in these markets.
2006-06-09 08:30:01 · answer #1 · answered by VATreasures 6 · 1⤊ 0⤋
Theoretically yes. An increase in interest rates means an increase in cost of mortgage payments. The less someone can afford, the less the demand for a house. However, other factors such as median wage and supply should be taken into account. I live in Sacramento where the majority of employment is through the state. If the state employees receive an increase in wage, rising interest rates will not have an adverse affect on buying power.
2006-06-09 15:30:42 · answer #2 · answered by Mister_fin 3 · 0⤊ 0⤋
yes, ever time they raise the rates houses stop selling
2006-06-17 18:40:49 · answer #3 · answered by blueeyes 2 · 0⤊ 0⤋
of course it will...check your history and you will see everything happens in cycles...guess whats coming next
2006-06-17 22:49:08 · answer #4 · answered by spike 2 · 0⤊ 0⤋