Higher interest rates tend to put pressure on house prices:

[Warren Currier]

As most people borrow money to buy property higher rates mean buyers can’t pay as much, so real estate prices fall across the board.

In very simple terms, if a rental property can support a mortgage payment of $3,000 per month, that’s enough to buy a $827,000 house (assuming a 20% down payment) if interest rates are 3.5%.

But if rates rise to 5.5%, that same $3,000 per month only buys a $654,000 house. 

What are some smart ways to adjust?