The real estate market is sensitive to various factors, and one of the most influential among them is the interest rate. As interest rates fluctuate, they can significantly impact both buyers and sellers. In this blog post, we will delve into the effects of rising interest rates on the real estate market, exploring how they can shape buyer behavior, housing affordability, and overall market dynamics.


  1. Decreased Affordability:

When interest rates rise, the cost of borrowing money to finance a home purchase also increases. This decrease in affordability can deter potential buyers from entering the market or force them to reconsider their budget. Higher interest rates result in higher monthly mortgage payments, making it more challenging for buyers to qualify for loans and afford homes that were once within their reach. Consequently, the demand for housing may soften, leading to slower sales and potential price corrections.


  1. Impact on Buyer Demand:

Rising interest rates can influence buyer demand in several ways. Firstly, as mentioned earlier, higher rates can decrease affordability, leading to fewer buyers actively seeking properties. Secondly, some buyers may rush to purchase homes before rates rise further, creating a temporary surge in demand. This influx of buyers can lead to increased competition and potentially drive prices higher. However, once rates stabilize at a higher level, the demand may taper off, resulting in a slowdown in the market.


  1. Shift in Housing Preferences:

As interest rates rise, buyers may adjust their housing preferences. Higher borrowing costs can push some buyers towards more affordable options like smaller homes, different neighborhoods, or alternative housing types. Additionally, buyers may focus on properties with more favorable interest rates, such as fixed-rate mortgages, to protect themselves from potential future rate increases. This shift in housing preferences can impact market dynamics and the desirability of certain property types.


  1. Impact on Existing Homeowners:

Rising interest rates not only affect potential buyers but also impact existing homeowners. Homeowners with adjustable-rate mortgages (ARMs) may experience higher monthly payments as rates increase, potentially leading to financial strain. Some homeowners may opt to sell their properties to avoid rising costs or refinance to secure a more favorable rate. The decision of existing homeowners to enter or exit the market can further influence inventory levels and overall market conditions.


  1. Investor Behavior:

Rising interest rates can also impact real estate investors. Higher borrowing costs may reduce the profitability of investment properties, especially if rental income does not keep pace with increased mortgage payments. This can deter some investors from entering the market or prompt them to adjust their investment strategies. However, rising interest rates can also lead to higher rental demand, as potential buyers may delay purchasing homes and opt to rent instead. Savvy investors can capitalize on this increased rental demand by offering attractive rental properties.



The impact of rising interest rates on the real estate market is multifaceted and interconnected. Affordability, buyer demand, housing preferences, existing homeowners, and investors are all influenced by fluctuations in interest rates. As a real estate professional or market participant, it is crucial to closely monitor interest rate trends and understand their potential implications. By staying informed and adapting strategies accordingly, one can navigate the changing market dynamics and assist clients effectively in achieving their real estate goals.


While rising interest rates can present challenges, it is important to note that they are just one factor in the complex real estate landscape. Local market conditions, economic factors, and buyer/seller sentiment also play significant roles. By combining a thorough understanding of these factors with proactive adaptation, the real estate industry can continue to thrive, even in the face of rising interest rates.


A Return to ‘Normal’? The State of Real Estate in 2022

Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that caused home prices to soar nationwide by a record 19.9% between August 2020 and August 2021.[1]

However, there were signs in the fourth quarter that the red-hot housing market was beginning to simmer down. In the month of October, only 60.3% of sales involved a bidding war—down from a high of 74.5% in April.[2] While this trend could be attributed to seasonality, it could also be a signal that the real estate run-up may have passed its peak.

 So what’s ahead for the U.S. housing market in 2022? Here’s where industry experts predict the market is headed in the coming year.


Economists expect to see mortgage rates gradually rise this year after hitting record lows in late 2020 and early 2021.[3] Freddie Mac forecasts the 30-year fixed-rate mortgage will average 3.5% in 2022, up from around 3% in 2021, while the Mortgage Bankers Association predicts that rates will tick up to 4% by the end of the year.[4,5] However, even a 4% mortgage rate is low when compared to historical standards, which, between 1971 and 2020, averaged 7.89%.[6]

What does it mean for you?

Low mortgage rates can reduce your monthly payment and make homeownership more affordable. Fortunately, there’s still time to lock in a historically low rate. Whether you’re hoping to purchase a new home or refinance an existing mortgage, act soon before rates go up any further. We’d be happy to connect you with a trusted lending professional in our network.


In 2021, we experienced one of the most competitive real estate markets ever. But price reductions are on the rise, and the time it takes to sell a home has been creeping up since June.[7]

What’s causing this change in market dynamics? Economists suspect a fundamental shift in supply and demand. National Association of Realtors Chief Economist Lawrence Yun points to increased supply from an uptick in new construction and an end to the mortgage forbearance program[8] Demand is also predicted to soften as rising mortgage rates and record-high prices make home ownership unaffordable for a growing number of Americans.[9]


Property Search


While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. I can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood. If you’re considering buying or selling a home in 2022, contact me. I’ll work with you to meet your real estate goals this year.

Contact Us

Sanncha Kiss


Realty World C. Bagans 1st.


Article Sources:


  1. Fortune
  2. Fortune
  3. Freddie Mac
  4. Freddie Mac
  5. Mortgage Bankers Association
  6. The Mortgage Reports
  8. National Association of Realtors
  9. Reuters
  10. Yahoo! News
  11. CNBC
  12. com
  13. CNBC



Arguably, the first step to purchasing a home is to call a Realtor.  However, one of the first set of questions any good Realtor will ask?  “Are you prequalified with a mortgage lender?”.  Of course, we know there are a lot of cash buyers out there, still your Realtor will expect to see some form of Proof of Funds (POF) before moving ahead with the process.  Do not be offended by this, just know that your Realtor is looking out for your best interest.  Without a prequalified letter, your Realtor will be clueless as to how much house you can afford and will not know where to start.

 A lot of times, you the buyer does not know your financial limitations until you have a discussion with a mortgage lender.  There are a lot of variables that goes into the mortgage qualifying process, but fortunately these days most lenders will be able to qualify you after one phone call.  The prequalified letter gives an estimate of the amount you can borrow.   It is one of the most important steps in the home buying process. 

You may know all the features you and your family want in a home.  Afterall, who does not have a dream home idea?  But like just about everything else, price matters.  Here are some advantages of talking to a lender and getting prequalified:

  1. You will have a realistic idea of what you can afford.
    • The lender will inform you of any new mortgage programs and calculates other items you may not have thought about such as, property taxes, homeowner’s insurance etc.  You will also get an estimate of the amount of money you need to bring to the closing, thus avoiding “sticker shock” when the time comes.
  2. Your Realtor will be able to narrow the search and as a result saves a lot of time.
    • Various individual’s time will be wasted if you are touring homes that are not in your price range. This includes not just your time but your Realtors time and depending on the situation the seller’s time.  If the home is occupied, the seller must make adjustment for showing appointments.  Not to mention the fact that another person could have had that time slot that you occupied.
  3. Everyone involve will know that you are serious and ready to move forward.
    • Currently, we are in a seller’s market. As a buyer, you have a lot of competition for the same home.  When you are prequalified, you have a stronger negotiating power.  Regardless of how much your offer is, sellers are usually thinking “show me the money”.  Sellers do not want to risk being “in-contract”, having their home off the market, missing out on other offers only to find out you are not qualified to make the purchase.

If you are asking the question: Should I get prequalified for a mortgage?  Yes you should!  If you are not already working with a mortgage lender, your Realtor will be able to refer you to qualified lenders.  With a good Realtor, you are always in “good hands”.  Here is a short video on the mortgage qualifying process.


Written by Sanncha Kiss – Realtor in Lehigh Acres FL 

3 Reasons to Invest in Real Estate

  1. Freedom of time
  2. Control of Your Money
  3. Financial Security 

Freedom of Time

The best reason to invest in Real Estate is Freedom of your time.  According to Bureau of Labor Statistics, the average full-time employed person spends 8.5 hours working.  Let us not forget the hours used to get ready for work and traveling to and from work.  If your income is solely dependent on full-time employment, you do not have much control over even the few vacation days that you are allowed per year.  Instead, you need to put in a request ahead of time in order to take this time off.  Even so, some people are so busy working that they do not get to take these “allowed” vacation days off. 

According to CNN travel, in 2018, a whopping 768 million vacation days were unused in the US. These are missed opportunities for your own personal pursuit.  It is also time taken away from family and friends. Considering that these are paid vacation days, people are basically leaving money on the table.  Real Estate investment when done right, is relatively passive, thus allowing time to pursue and enjoy more of what life has to offer.

Control Of Your Money

If you invest in some other type of passive income such as the stock market, how much control do you have over your money?  The answer is really zero. Even the best Stock Analyst cannot predict the future performance of the market with 100% certainty.  There are just too many variables involved in the stock market’s performance and many unforeseen circumstances. 

Unlike stocks and bonds, Real Estate is tangible.  You can see the brick and martyr your money is invested in.  It is much easier to conceptualize the simple fact that we all need to live somewhere than to try to figure out stock market trends and such intangible, convoluted investments. 

Financial Security

There is no investment that is risk-free. However, Real Estate is by far the most secure investment.  A person who invest in a single or multi-family property can earn a steady income by renting out the property and still collects future lump sum from the sale of the property.  

Real estate is also the best inheritance to pass down to your children.  If you are concerned about paying for your child’s college education, you can invest in a rental property now, collect cash-flow while you raise your child, then sell the property to pay for college.  I prefer this over a restricted College Savings Plan because with this idea, I do not have to worry about losing my investment if my child decides not to go to college, or better yet ends up getting a scholarship instead.


Real Estate offers plenty of options to fit the goals of every investor.  With the right Real Estate professional to help you navigate, you will be well on your way to Freedom, Control and Financial Security!


Lehigh Acres Duplexes

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Both 2 BR and 3 BR per side floor plans are popular and available in Cape Coral. These properties are available throughout the city and often sell very quickly when they hit the market.

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Sanncha Kiss

Real estate investor

house hacking 

house hacking strategy is one way to get started in real estate investment.  This strategy is one that requires the least amount of cash.   By working with a knowledgeable Realtor, this can be achieved hassle-free at the time of purchasing your very first home.  If you already own your primary residence, you can do this by renting out a part of the property, such as a bedroom, basement or any portion of your home.

house hacking is when you live in one of the multiple units of your investment property as your primary residence, and have renters from the other units pay your mortgage and expenses

If you are buying your first home, you can start with a duplex and designate one unit your primary residence.  The benefits are great!  With the right deal, your mortgage payments will be covered all while building wealth through Equity simultaneously!

I started out in real estate with the house hacking strategy.  I did very small remodeling to the basement of my single-family primary residence and converted it into 2 bedrooms with a shared common area.  I rented these rooms to individual college students and the income from that covered the mortgage and most of the expenses for utilities.  The savings from this strategy allowed me to accumulate extra money to invest in additional investment properties.  


You can live free while building wealth using house hacking strategy. Now is an exciting time to invest! Interest rates are at an all time low!  There are great deals on newly built multi-family properties especially in the Lehigh Acres area. Contact me to find out more.

About the Author:

Sanncha Kiss is a savvy, versatile Real Estate Investor who has been investing in single-family homes in Ohio and Florida for many years.  Currently, she is a Real Estate Agent in Florida with a passion for helping others with every aspect of real estate. Connect with her today!


Lehigh Acres

  1. Lehigh Acres was developed in the mid-1950s by Chicago businessman Lee Ratner. Seeking a  tax shelter 
  2. Lehigh Acres Cost of Living is Cheaper than the US average and housing is the main factor.
  3. Lehigh Acres is second home to many snowbirds.
  4. Lehigh Acres has 175 miles of canals and 16  lakes.
  5. Lehigh Acres real estate appreciated 156.02% over the last ten years.
  6. Lehigh Acres is in the top 10% nationally for real estate appreciation.


Are you tired of losing sleep over your retirement account?  You are not alone.  Over the past couple of months many Americans watched in dismay as the balance in their 401k and IRA accounts diminishes.  The feeling of helpless defeat sets in and many are at a loss as to what to do now. 

The problem with 401k and IRA accounts is that people do not have much control over their money.  You basically turn your money over to a financial services corporation and hope that they know what they are doing.  Even the most reputable of these corporations, despite their efforts to mitigate risk, cannot do anything to prevent a stock market daily free-fall as what we have seen in recent months.  Hence the reason these corporations all have that “market risk disclaimer” that you must acknowledge before investing your hard-earned money. 

The alternative is to invest in real estate.  Investment property is not subjected to the same risk as stocks and mutual funds.  The fact that you can harness the power of leverage, residential real estate does not require a whole lot of cash. 

No need for sleepless nights and constant “nail biting” wondering how the financial market will open or close on a given day.   The value of your “nest egg” should not depend on the variations of remarks that Steven Mnuchin (Secretary of the Treasury) makes.  Real estate is tangible!  With a residential rental property, someone is paying rent to live in a physical building.  Needless to say that regardless of the trajectory of the stock market, everyone still needs a place to live.

Let us help you find a rental property today!  Call 614-286-9014.