Housing prices remain high due to a supply-and-demand imbalance, even as inflation has dropped in other sectors
If the Federal Reserve lowers interest rates, borrowing could become cheaper, theoretically making homes more affordable
Lower rates might spark a surge in demand without increasing housing supply, driving up prices even more
Many homeowners with ultra-low mortgage rates are hesitant to sell in a high-rate environment, reducing housing supply
Experts say lower rates could lead to more homes being put up for sale, easing pressure on both the buying and rental markets
If demand spikes and supply doesn’t catch up, home affordability may get even worse
Potential buyers may have to deal with increased competition, higher prices, and still-limited housing options
Lowering interest rates may stimulate demand, but without more housing, the affordability crisis could worsen