Do Higher Mortgage Rates Make Home Price GO UP?

March 23, 2023April 18, 2023

Home prices and mortgage rates are positively correlated, which means when interest rates are rising, home prices are likely going up as well. Home affordability are certainly made worse with higher interest rates, but it is unlikely that higher rates will “crash” real estate home values.

Mortgage rates have risen in the last year and there has been speculation that home prices will fall because of this. Historically the opposite of this has happened. When rates have gone up, home prices have gone up as well. It is most likely that home prices will keep going up with inflation rather than moving up and down with mortgage rates.

Do Higher Mortgage Rates Make Home Price GO UP?

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