REIT and Interest Rates The impact of rising interest rates on REIT stocks is a complex interplay of factors that can lead to both challenges and opportunities. While interest rate hikes can create headwinds for REITs, diligent investors can adapt by employing strategies like diversification and focusing on quality. By staying informed and navigating the changing market dynamics, investors can continue to benefit from the income and diversification that REITs offer, even in the face of rising interest rates.