Raising interest rates can increase the costs of housing. (Not the sticker price, the cost.) Fewer developers will build new apartment buildings because finan

Raising interest rates can increase the costs of housing. (Not the sticker price, the cost.) Fewer developers will build new apartment buildings because financing is getting much more expensive. Fewer new apartments with a growing population means rents will not be getting cheaper unless we have a deep recession and lots of people lose their jobs entirely. Same goes for housing -- fewer houses will be built by builders. Existing housing prices will probably go down, but the people buying them with mortgages will pay just as much, if not more for them each month because debt is getting more expensive. But instead of that money going to the old owner, it'll go to the lender.