Ali Ata: How Interest Rates Affect Property Values
Interest Rates and Real Estate: Ali Ata Explains the Link investopedia.com Interest rates significantly impact the value of real estate—just like they do on other types of investments. It is also true about the rates of Treasury Bills and interbank exchanges. Because their impact on an individual's power to purchase properties is profound, many people incorrectly assume that the current mortgage rate is the only factor in real estate valuation. But mortgage rates are only one of the several factors that influence property values, according to Ali Ata. Interest rates also influence capital flows and investors' expected rates of return on investment, driving property prices in various ways. Interest rates can also significantly influence mortgage rates and the cost of financing, which affect values. However, supply and demand for competing investments and capital have the biggest impact on investment values and required rates of return (RRR). A...