Housing Market 2.0: How Lower Interest Rates Will Change The Market

"And if mortgage rates are to fall to 4.5% in the coming months and years, then that same mortgage would fall to $2,533 a month, more than $1,100 a month cheaper than where we were in the beginning part of 2024."

"And so if mortgage rates continue to go down, it could encourage some more homeowners to say, 'Okay, I can consider selling my home now because the jump in mortgage rates isn't as bad as it was.'"

"And if mortgage rates are to fall to 4.5% in the coming months and years, then that same mortgage would fall to $2,533 a month, more than $1,100 a month cheaper than where we were in the beginning part of 2024."

"Because we've already seen a big drop in mortgage rates from the beginning part of 2024. In the beginning of 2024, mortgage rates were close to 8% on a 30-year fixed rate mortgage."

"For example, between the last week ending September 13th, this is before the Fed cut interest rates. Week over week, we saw mortgage applications jump by 14% in just one week."

"If you see more bidding wars on homes, that means home prices might go up even more."

"But now, as the Federal Reserve Bank has committed to cutting interest rates, we have now started to seen we've started to see that home builder confidence is starting to go up because they've been anticipating these Federal Reserve Bank rate cuts."

"And now we in a cycle where it seems the Federal Reserve Bank is going to continue cutting interest rates for it looks like the next two years."

"But you want to pay attention to what happens in November with the election because that could definitely change the housing market..."

"And the housing market has been a hot topic since the pandemic and it's been a hot topic in the presidential election as well because both parties are talking about how they want to change the housing market and make it easier for people to be able to buy a home."