What will happen to rents when interest rates go up??

[Adam Jaken]

Hi guys and a happy Sunday to you all! What will happen to rent prices when interest rates go up and home prices fall? why?

[Bryan O.]

Hi @Adam Jaken. People don't buy houses based on the cost of the house, they buy based on the cost of the payment.

If interest rates go up and house prices go down, the payment (and therefore demand) will likely stay the same. Realistically, it's a wash for buyers and a bit of a loss for sellers. Interest rates alone have little to do with rent rates.