What Interest Rate Hikes Mean for Property Management Companies
September 5, 2022
Inflation usually causes mortgage interest rates to rise, which means fewer people are purchasing new homes. Instead, they are flocking to rental properties, keeping property management companies busy. So, while high mortgage interest rates can negatively affect real estate purchases, it typically means an increase in tenants and higher than average rental prices. Right now, mortgage interest rates are rising, although they aren’t at the all-time highs seen in the 1980s where rates were approaching 20%. Mortgage interest rates tend to follow the pattern of the Federal Reserve, who said it would likely raise rates for a second time this year in a continued effort