How do interest rate increases really impact real estate decisions?

Although we assume a direct correlation, AlphaFlow’s Ray Sturm thinks the answer is more complicated

As this month brought word that the Federal Reserve had lifted the benchmark federal funds rate by a quarter of a percent, the doom-and-gloom scenarios began spinning in real estate offices across the country. If the real estate industry has benefitted from record low interest rates, then rising rates will depress the industry, right? Well, the answer might not be so simple.