Will Rising Interest Rates Crash the Housing Market? Nope! Here’s Why.
Historically, as interest rates have risen more than 1.5% for more than a year, home values have also increased without a housing market crash. Actually every single time home mortgage interest rates have risen home prices have increased. One of the reasons is that rates have risen because the economy was chugging along and economists wanted to slow it down, so the Federal Reserve raised interest rates.
Also, interest rates went up during inflationary times, so since there was inflation home prices were going up as well.
There is very little evidence that this current round of inflation will cause the housing market to collapse or crash.