Lower mortgage rates should ameliorate our housing situation, in theory. But where mortgage rates are at the moment, and where they’re expected to go in the next year or so, isn’t enough for that to happen, according to Capital Economics.
Anxiety about a potential recession and sluggish economic data is leading to expectations about lowered interest rates and cheaper home loan costs. But lower rates alone won’t resuscitate the housing market. Rates are sitting at 6.47%, high enough that people don’t want to list their homes for sale, and costly enough to keep would-be homebuyers on the sidelines.
