how interest rates affect real state industry?
596629
The higher the interest, the higher are monthly payments   and some people will not qualify for loans,  which means that if u have less buyers  the price will go down like with all others commodities.
357186
Depends how current.  Monetary policy takes a little while to trickle through the various layers before it impacts the end consumer.  Longer term, prices across the board will change after a change in monetary policy and that would affect spending.
700205
It depends on the interest rates, what instruments of investment your using and the apr rates.
577064
I'm not sure exactly what you are asking, but the present value is calculated using either an interest rate that incorporates inflation if the cash flows are inflated cash flows, or a not if the cash flows are current dollars.\nIn other words...\nInflation will affect the value in the future, not the present.
894121
Fluctuating intereset rates for home and business loans.
660013
The impact that you see quickly is the initial reaction to the news by traders. Thousands of traders have their fingers poised over the Buy or Sell button, waiting for the news. This reaction is dissipated rather quickly, then the market turns back to the business at hand.\n\nBusinesses can develop more quickly if they borrow money. This is sometimes referred to as "leveraging" your business. \n\nThe interest rate in question is the cost of borrowing money. If interest rates are low, and the cost is cheap, more businesses will borrow. With interest rates rising, fewer will borrow, like now. But everybody doesn't run to the bank the day after interest rates change. Those loans are spread out over weeks and months. \n\nThat is the lag, when the actual effect is felt, when the loans go into effect, or the lack of loans fail to spurt growth.
324133
High interest rates with a healthy, growing economy.
496967
There's actually some debate about this.  Traditional wisdom says that high interest rates lower capital outflows and low interest rates increase it.  But if the raising of interest rates comes close to a possible default, the risk premium will make the capital account worse off.
253236
These rates aren't very high compared to the 80's when there double digits. I think they will climb to around 8% or so. The constent slow down of the real estate market will result in over supply with less demand. Maybe in order to increase purchases at the present higher than they ought to be prices the Feds will lower the interest rates to seduce buying.
688950
the short answer is inflation . when inflation is high the fed will raise the interest rate to combat and try to slow down inflation .
746759
That depends on how often the interest is compounded.
362718
no if fewer productive productive companies slowed down then interest rates would also go down
43434
No, it levels out.  Drastic increases only happen every 10 - 20 years.  Some local things may effect a large change but the economy won't.  The present rise in Real Estate has a lot to do with the interest rates being so low for so long, and with the help of some politician land owners hiking prices it causes a snowball effect.  You'll see a gradual increase but look at the supply and demand, and the over pricing that's going on right now.  It's baseless and will take a few years to catch up.
515952
Well, their action last week "hurt" the economy -- they're completely aware of that, and did it on purpose.\n\nThe Fed raised interest rates with the specific purpose in mind of slowing economic growth ("hurting" the economy).  They did so because they feel that too much economic growth can cause inflation, which they consider worse than slow economic growth.  Higher interest rates means it's more difficult and more expensive to borrow money, both for businesses and consumers.  That means less businesses will borrow money so they can grow, and less consumers will borrow money to buy things, slowing both capital investment and consumer spending -- and slowing the economy.\n\nTheir policies over the last 20 years or so have led to a more stable US economy than in the past, with less wild swings of growth, inflation, recession, etc.  We still have ups and downs, and the economy can still be affected by major events such as 9/11 or stock market crashes -- but not as much as in the years before the Fed took such an active role.\n\nSo even though their action of raising interest rates was designed to "hurt" the economy in the short term, over the long term their policies have resulted in a more stable US economy that is generally a benefit to both businesses and consumers.
25691
As interest rates rise, so does the cost of capital. Therefore (eventually) labor becomes cheaper than capital, and capital improvements decline until the reverse is true i.e. falling interest rates. If you are an Indian firm that manufactures products for an American company, then this will harm Indian industry (but only to a degree, as even in a time of rising interest rates Indian labor is still cheaper than American labor). For Indian manufacturers producing machinery, this is not good news, since the cost of capital will not be exceptionally less expensive than labor.
356699
Yes.  Interest rates, taxes (on gasoline or foreign goods, for example), tax cuts, treasury buybacks, central bank dealings in foreign currency and gold, etc.  The politicians have a lot of tools.  Better to get a book on macroeconomics and read to your heart's content.
1022341
No, everything is quieting down as interest rates get higher.  They're still good rates, but people think if they can't get it in the 5 - 6% bracket, it's not good.  :(\n\nArizona is still one of the hotter markets though, compared to other areas!