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: