HOUSTON - We've seen how a rise in interest rates made a bear market for stocks, but it could also slow new construction. Over the past year, nearly 30,000 homes have been started in the Houston area, but with interest rates slated to possibly hit 5.8 %, less construction could be started in the future.
Cheri Fama, President and COO for John Daugherty Realtors, says she's seen plenty over her two decades of dealing with Houston real estate and she says we are still experiencing historical lows when it comes to interest rates. She adds that Houston never has extreme highs and lows when it comes to the housing market.
Fama, also, sees Houston always being favorable to new construction thanks to few regulations when it comes to zoning.