Interest rate hikes to eventually affect overall acquisition costs for homebuyers: Subhash Goel

In the dynamic world of real estate, interest rates play a pivotal role in shaping market trends and influencing the affordability of homes. Subhash Goel , a renowned expert in the real estate sector, shares his insights on how rising interest rates can impact the overall acquisition costs for homebuyers and the broader real estate market.

The Direct Impact on Mortgage Costs

One of the most immediate effects of interest rate hikes is the increase in mortgage costs for homebuyers. Higher interest rates mean higher monthly mortgage payments. Subhash Goel explains that:

  • Increased Monthly Payments : As interest rates rise, the cost of borrowing increases, leading to higher monthly mortgage payments. This can significantly affect the affordability of homes for buyers.
  • Reduced Loan Eligibility : Higher interest rates can reduce the loan amount that buyers are eligible for, as lenders consider the borrower's ability to repay the loan with higher interest charges. This can limit the purchasing power of homebuyers and affect their ability to acquire their desired properties.
 
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