Friday, October 21, 2016

Real estate will suffer less than bonds when rates rise

Real estate investment trusts profit from cheap debt, and their value depends on low discount rates. Rising interest rates hurt them both ways.

House prices depend on debt. Of the four factors that determine house prices, three of them directly relate to financing terms. If mortgage interest...
http://marketinsite.wpengine.com/real-estate-will-suffer-less-bonds-rates-rise/

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