Are interest rates the only game in town when it comes to property prices?
Much has been made of the link between interest rates and property prices, but will home values necessarily go up if interest rates peak and start to decline over the coming 12 months?
The outlook for house prices the rest of this year remains bumpy. (Image source: Shutterstock.com)
While the sharp rise in rates has certainly moved the property market backwards, many commentators are telling us that interest rates alone can predict where the market will be in a year or two.
Is that correct?
What is the property impact of interest rate rises?
Interest rate rises impact the market in three ways.
The first is to discourage banks from lending more money to property buyers.
Rising rates also crimp the amount people can borro…
