Fear of higher interest rates

[Brian Plajer]

Hi All,

  Is it correct to think these historically low interest rates will rise and the current crazy home values will fall due to higher rates?  I'm sure others are factoring in these scenarios into their decisions as that could affect any expected appreciation.

thanks, 

Brian 

[Bill B.]

If they raise interest rates it’s going to be because there's too much inflation. If there’s too much inflation the houses have already gone up another 10-20% so you’ll still be ahead if they drop 5%. (Historically massive price drop.). Compared to housing the stock market woudl get crushed way harder and faster with higher interest rates. So until you see that crash you should be fine. 

Ps. I assume this argument is only if you should sell. As for buyers the lower price at higher interest rates won’t help them.