What’s happening with interest rates in 2022, and what’s the effect on the real estate market?

All we hear about in the financial news these days is the Federal Reserve raising interest rates. 

Mortgage interest rates are certainly going up, and this trend is expected to continue through 2022 and beyond as the Fed tries to keep inflation in check.

But how do rising interest rates impact the real estate market?

Higher interest rates mean less purchasing power for financed buyers, which has a effect on buyer demand; Buyer’s using financing can’t afford as much, so they aren’t willing or able to offer as much for a given property. 

But there are many other factors that drive the real estate market, prices, supply, and demand. 

In the video below, we discuss the interest rate outlook for 2022, and what that means for Florida real estate investors:

Also check out our podcast episode on rising interest rates and the real estate market!

Jeff Copeland

Jeff Copeland is the Broker/Owner of Copeland Morgan LLC. Recognized as one of the best property management companies in St. Petersburg, FL by Expertise.com in 2020 and 2021, and more recently by Home Team in 2026, Copeland Morgan LLC provides full-service real estate sales and property management in St. Petersburg and across the Tampa Bay area. Licensed as both a Florida real estate broker and a certified residential contractor, Jeff also owns Copeland Construction & Restoration LLC He is a 22-year military veteran and holds a master's degree in public administration and a bachelor's degree in management and international business. In addition to decades of experience across federal, state, and local government, Jeff has owned, operated, and sold multiple Florida businesses. He is also the founder and CEO of The Jackson Copeland Foundation, a charity in St. Petersburg, Florida dedicated to supporting leukemia patients and their families while sponsoring high-impact leukemia research.