Dear Monica: How much do interest rates affect residential real estate?  Janine G

Dear Janine:  Generally interest rates do affect residential real estate because if they are lowered, more buyers are eligible to buy which spurs the market.  But it can also make prices rise as demand is higher.

In our area there are many cash offers.  Buyers may get a loan after buying and are just paying cash to make the transaction easier.  Or they may get a loan when interest rates go down enough to make the rate attractive.  In the very high end, most buyers liquidate their stocks to pay cash and will likely not finance any part of the transaction in the future.   Interest rates are important but it varies from buyer to buyer.