If the interest rate rises, the present value of property rises because the return is now higher.

Name: If the interest rate rises, the present value of property rises because the return is now higher.
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When the interest rate rises, the present value of property typically falls because the cost of borrowing increases, making the property less affordable or attractive as an investment. Higher interest rates mean higher mortgage costs, which can reduce demand and lower property values.

If the Interest Rate Rises, the Present Value of Property