Thank you for the opportunity to help you with your question!
to me personally i think if the interest rates on homes is lower this makes more buyers to purchase less expensive home than when the interest rates are higher simply because interest rates play a big role in how large the payment will be. Whereby a
slight rise in historically low interest rates could make it a lot more
expensive. so this means that higher interest rates mean lower borrowing power.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 2nd, 2015
the risk would be if there is increased
mortgage rates this will reduce affordability, reduce demand, and hence lower
home prices. That’s certainly one possibility, though the reality might
be more complex.