Is The Value Of Your Home Going To Fall As Rates Rise? 2

will higher interest rates reduce the value of your home? Probably not

Another way to observe that home prices (in the US, and most likely everywhere else) don’t react in the same mechanical way to changes in interest rates as bonds do, is by looking at their correlation.

Bonds and rates have an inverse relationship. This means a correlation of -1. When one variable goes up, the other goes down.

If this were true for houses and rates, we would see a correlation that, at the very least, remains negative most of the time.

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