When Lenders raise Mortgage (or Interest) Rates, (usually) a few things immediately happen in the Real Estate Market:
. Potential Home buyers have more difficulty to qualify for a mortgage (because now obtaining money from the lenders costs more).
. Potential Home buyers now qualify for smaller mortgage or don't qualify at all.
. Sellers (Property Owners) have more difficulty (depending on the location) to sell. They have to lower their expectations in terms of how long it's gonna take to sell the property(ies) and how much money they'll be able to obtain from a potential buyer in the new circumstances.
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