: How does the housing market work? What will it take for the interest rates to drop? Is there any hope in sight?
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To add on to what others have said, current interests rates are actually pretty normal.
Historically, they are even a bit below normal.
The unusual rates were the 2-4% that we saw for a few years.
Of course, the combination of these rates with high home prices makes it tough to buy for many.
But that’s not the concern of the Fed.
There is a good chance that the Fed waits for supply to meet demand and drive down home PRICES before they even consider lowering fed rates to try to influence mortgage rates to come down.
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