What is interest-rate risk?
Exposure to higher borrowing costs, lower refinancing proceeds, and lower values as required returns rise. Rates reach real estate through debt service, refinancing, and cap rates.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.