I’m a layman, not an expert by any means but wouldn’t interest rate increasing mean spending, including buying property, decrease? Would that not mean that house prices would fall to intice more spending?
I understand currently interest rates are normal zing or falling but hasn’t this been the case for many years now since COVID lockdown?
In: Economics
In theory yes.. but maybe in reality it only leads to prices increase less than they would with lower interest rates.
We still have in many western countries not enough housing. (or not at the right locations) That’s the root of the problem. If you have more demand than supply prices will increase.
As long as you can find enough people able and willing to pay high prices and high interest rates.. prices will increase.
Latest Answers