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High rates result in lower prices. Low rates result in higher prices. The rate on its own is really pretty irrelevant.
by hndamien 8y ago
High rates result in lower prices. Low rates result in higher prices. The rate on its own is really pretty irrelevant.
- astura 8y agoExactly. Most home buyers take out a mortgage. Most people also look at monthly payments as a proxy for affordability. Monthly payments raise when interest rates rise. Therefore, sellers need to ask for lower prices when rates are high in order to attract buyers. A $150,000 mortgage at 12% interest has monthly payments of $1,543, at 5% interest its $805.