FA_Q2
Gold Member
Home prices will fall. I see no reason that it would lower rental rates though. Falling home prices due to rate increases does NOT make buying a house cheaper, it just lowers what you can make by selling it.Individual house prices inflated on low interest rates as well. I'm curious to see what will happen as the Fed raises rates at least 4 times in 22.
That MIGHT increase supply for rental properties but I highly doubt it. It is much more likely that rents simply will continue to increase as the larger effect here would be to drive people from purchasing a home into the rental market as it makes less sense financially to purchase a home the higher the rate goes.