LA Times - Will interest rate declines shake up the housing market?
For many prospective homebuyers, the last two years have been brutal as high home prices and mortgage rates produced the most unaffordable housing market since the 2000s bubble.
Many experts don’t expect drastic improvement soon, but a shift could finally be underway.
The cost of a 30-year fixed mortgage has fallen from above 7% in May to the low 6% range as of last week. On Wednesday, the Federal Reserve cut its benchmark interest rate for the first time since 2020. It began raising it in 2022 in a bid to fight inflation.
“I think for the next two years, we are in a world where the pressure is on rates to come down,” said Daryl Fairweather, chief economist with real estate brokerage Redfin.