How does interest rate affect real estate?

Interest rates can have a significant impact on the real estate market. When interest rates are low, borrowing money to purchase a property becomes more affordable, which can lead to an increase in demand for homes and an overall appreciation in property values. Conversely, when interest rates are high, borrowing becomes more expensive and demand for homes may decrease, leading to a decrease in property values. Additionally, higher interest rates may also make it more difficult for people to qualify for mortgages, further reducing the number of buyers in the market.

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