The Federal Reserve raised interest rates by 0.25% at its latest meeting, and mortgage rates typically follow. As borrowing costs climb, homeownership moves out of reach for more people, and many turn to renting instead. That added demand pushes rents up. The graph below shows how mortgage rates and rents have moved together over time.
Source: Freddie Mac, U.S. Bureau of Labor Statistics, Rent of primary residence CPI increase is Month-over-Month
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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