The Relationship Between Interest Rates and the Housing Market

Interest rates on the housing market are inextricably linked. First time buyers' ability to pay any amount of money is going to depend very much on how much they can borrow. When interest rates go up, sellers are somewhat reluctant to drop prices by as much as might be needed for a transaction done. For most people, in some sense, they're actually better off when house prices are lower. You lose on the sale, but you gain on the purchase. And if the thing you're buying is of higher value, then you gain more from a percentage decline in house prices. But I think there's one group who don't see it that way - those who already own a home