Will REITs Drop When Interest Rates Rise?

Matthew Frankel, CFP, The Motley Fool
·2 min read

Rising interest rates can certainly be a negative catalyst for high-dividend investments like real estate investment trusts, but that doesn't mean their stock prices will always go down when rates go up. In this Fool Live video clip, recorded on Sept. 3, Millionacres senior real estate analyst Matt Frankel, CFP, discusses the general relationship between REITs and interest rates and why investors shouldn't stress about it too much. Matt Frankel: "How did REITs perform during the last period in which interest rates went up?" REITs, all things being equal, are very sensitive to interest rates.

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