Big drop in mortgage rates will have ‘really big impact’ on market: Realtor.com economist

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[raynoldgrey]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[martinmccloskey]

7.50% is still HIGH.

So if you bump the rate to 12% and the lower it to 7.50%, it is still high.

[PercentForTheBigGuy]

Ban corporations from owning homes and gouging prices or leaving them vacant. SFHs should belong to individuals in the community NOT foreign nationals or hedge funds. Of all the things for democrats to regulate...this should be #1

[CameronFussner]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

[godislove]

Call it a big drop if it drops to something like 5. With 7.5, there's no difference.

[maness]

When rates drop, house prices go up
Duh. Rinse and repeat.

[JR-szdw]

It’s still expensive and less houses available.

[bigpicturethinking]

By the time rates are cut we are going to be in serious trouble so home buying won’t really be a concern for most.

[hlf_coder]

Keeping the housing market "competitive"? That's an odd word for obnoxiously expensive. If prices don't come down considerably, home ownership is a thing of the past for the middle class. 

Rates aren't the problem. The problem is PRICES.

[HomeLoansByCarlosScarpero]

As a VA mortgage loan officrr and best selling author of a VA mortgage book, I'm excited that she mentioned the VA program.

However, VA home buyers have nearly identical credit scores as conventional buyers and significantly higher scores than FHA.

While the program has very flexible underwriting, please do not spread the rumor that VA buyers have bad credit. It's simply not true.

[KarenKite]

Cars is worse. Somebody will have to bail the car industries out. EV's demolished them.

[tjthomas]

You bet, a 300k home, no down at 7.5% is around 2500 a month and you need to make over 90k a year to qualify depending on you income to debt ratio.

[floxydorathy]

Lower mortgage rates usually mean more opportunities for homebuyers. It could really shake things up in the real estate market.

[gayhendrie]

Election year coming up amazing isn't it

[sweetdragon]

I know two people that had rental properties until the government allowed renters to not pay during the pandemic. After the pandemic, they both sold those homes and pretty sure this scenario played across the country.

[scottdeforge]

It's the price of the home that is far more important than the mortgage interest rate, also putting at least 10% down protects you a bit against falling home prices.

[alejandroa.aguirre]

Don't be dumb buying overpriced "payment" on a house. Wait till the market crash. Be cheap, invest, and save, wait for everyone to lose homes, and screw their credit. Glad it's the old buying up thank you for the sacrifice 👍

[eharminc]

If you don’t buy home now you don’t buy many years!

I got my house 3 months ago yes my mortgage it’s high but today it’s higher and next year it’s higher…

[mlm]

Interest rates will remain high for a very long time.

[WhateverItsanOpinion]

Big DROP... Thats laughable. A big drop would be 2% Not a few decimal points.. So you save 100 per mo on mortgage who cares