how interest rate affect property values

Interest rates, particularly the rates on interbank exchanges and Treasury bills, have as profound a bearing on the worth of income-producing land as on any investment vehicle. as a result of their influence on a human ability to buy residential properties (by increasing or decreasing the value of mortgage capital) is therefore profound, many folks incorrectly assume that the sole deciding consider land valuation is that the current mortgage rate.

However, mortgage rates square measure just one interest-related issue influencing property values. as a result of interest rates conjointly have an effect on capital flows, the provision and demand for capital and investors’ needed rates of come back on investment, interest rates drive property costs during a form of ways that.

 

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