Interest rates are on everybody’s minds. The info is out there: Multiple .5% rate hikes are imminent. But what exactly does that mean? Will these rates cause home prices to drop and if they do drop, are homes actually going to be more affordable? And what if rates keep going up but prices remain relatively flat, as we are seeing in today’s Vancouver condo market? Let’s take a look at the numbers and see what they tell us.
Let’s use the example of a $1M purchase price, assuming a 20% down-payment and run several scenarios for context: