Think 7.5% mortgage rates automatically mean home prices have to crash? 🏠📉
Fed Governor Michael Barr just highlighted something a lot of people overlook:
About HALF of outstanding mortgages are still at 4% or below, and nearly 80% are below 6%.
So what happens when moving means giving up that mortgage for something around 7.5%?
People DON'T MOVE.
High rates hurt demand, but they can also crush SUPPLY.
And in housing markets where inventory is already tight, that matters.
Housing affordability is a huge problem. But high mortgage rates alone do NOT guarantee falling home prices.
Have questions about buying, refinancing, or tracking your mortgage rate in California?
Call or text 925-885-1919, request a video or phone appointment, enroll in free RateAnalyzer rate monitoring, or start our Quick Application.
Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate