Blog > How Do Interest Rates Impact Real Estate Investing?

How Do Interest Rates Impact Real Estate Investing?

by Gordon Hageman

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Interest rates influence both affordability and investor behavior. In my experience, when rates rise, borrowing costs increase, often reducing cash flow and cooling market demand. Conversely, lower rates encourage buying and refinancing activity, driving up prices and competition. Savvy investors adapt their strategies — locking in favorable financing during low-rate periods and seeking value buys when higher rates reduce demand. The most successful investors plan for rate fluctuations, focusing on long-term value creation rather than short-term shifts in borrowing costs.

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Gordon Hageman

Gordon Hageman

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