Do Rising Interest Rates Make Home Prices Drop? Mortgage Rates vs Housing
The misconception that home prices go down with a rise in interest rates is because home mortgage payment increase in value. But there are other factors that affect home prices. Inflation is a key indicator that interest rates are rising, and inflation makes real estate go up in value.
There are people that ask us if home prices are going to drop, and nobody can claim for certain that they will or not, but we currently don’t see any sign of home values falling in 2022 or in 2023.