Because real estate is a tangible asset, its value is often thought to be more stable than investments in the volatile – and often unpredictable – stock market. But even so, stock market movements can still have an impact on real estate and the housing market, including residential rental properties.

For instance, if the stock market goes down, those who are considering buying a home might hold off, as they may not be as confident about handing over a down payment from their cash reserves. This, in turn, can result in more people opting to rent – at least until the stock market changes direction.

Volatility in the stock market may also affect retirees who are planning to move to a warmer climate like sunny Florida. In this case, a stock market that is moving lower could hinder these individuals from moving too much money out of their portfolios, as well. So here, too, they may choose to rent versus buy.

If you are thinking about buying your first rental property, or adding to your portfolio of rental real estate, the stock market can affect this decision, too – particularly if you will be financing the purchase. That is because when the stock market rises, mortgage rates can oftentimes also climb.

Just the opposite is also true in that when stocks fall, the interest rates on mortgages will generally decrease, as well. And even a seemingly small movement in rates can make a big difference is the total amount that you pay for a property over time.

If you own residential rental estate in Orlando and/or the Central Florida area, and you would like to delegate some of the time-consuming tasks of managing tenants and maintaining the property(ies), and we’ll show you how to continue generating income and equity, while also freeing up your schedule to focus on other things.

You can reach us directly by calling (407) 429-4834 or sending us an email through our secure online contact form at We look forward to hearing from you.

Mortgage Rates vs. the Stock Market. By Colin Robertson. February 5, 2023. The Truth About Mortgage.