TBT: Is It Wise to Buy Real Estate When Interest Rates are Rising?

Apr 2, 2026

They debate whether rising interest rates should stop you from buying real estate and emphasize evaluating deals by the numbers. The conversation puts rates in historical context and explains how refinancing later can change outcomes. Practical criteria are covered: choosing the right market, inspecting property condition, running pro formas, and assembling a local team. They note higher rates can boost rental demand.

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ADVICE

Buy Only When The Numbers Work

Do run the numbers and buy only when the deal's financials make sense.
Marco Santarelli stresses mortgage rate levels don't matter if income minus expenses and mortgage still produce acceptable cash flow.

INSIGHT

Current Rates Are Low Versus Long Term History

Perspective matters because today's ~6% mortgages are below the 1971–2022 average of about 7.77%.
Marco shows historical context (16.63% peak in 1981, record lows around 2.65% in 2021) to temper rate panic.

ADVICE

Buy When You Are Financially Ready

Do buy when you're financially ready and in the right market rather than trying to time rates.
Marco advises having down payment, investment capital, and readiness to act on fundamentally sound deals.

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Click Here for the Show Notes

In this episode, we tackle a timely question from a listener: is it still wise to invest in real estate while interest rates are rising? The key takeaway is that rising rates alone shouldn’t deter you—what matters most is whether the deal itself makes financial sense. While borrowing costs have increased, today’s mortgage rates remain below long-term historical averages, and real estate continues to be a reliable wealth-building asset over time. The focus should always be on fundamentals: choosing the right market, evaluating the property’s condition, ensuring the numbers work, and surrounding yourself with the right team. Real estate is a long-term investment—early cash flow may be tighter, but rents and property values tend to increase, and refinancing later can improve returns. Plus, higher rates often push more people into renting, increasing demand for well-positioned investment properties. Ultimately, it’s not about timing the market, but about being prepared and acting when the right opportunity comes along.

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Throwback Thursday Episode (The episode originally took place in the year 2022)

This episode is part of our Throwback Series and may include references to older content such as web classes, events, promotions, or links that are no longer active or available. While the conversation and insights still hold value, please note that some information may be outdated.

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