Our median mortgage rates have almost doubled over the past six months. As more rate hikes are on the cards, how will our residential market be affected? Which market segment is likely to be impacted? Will home prices fall when interest rates rise?
Over the past two months, we have seen a sudden surge of buyers into the market to lock in the home loan rates before they climb higher. Home buyers now face higher borrowing costs and those who take a maximum housing loan or hold multiple properties with an unstable income may be most affected. Home buyers who own a single unit, especially those with dual incomes, may be the least affected.