: 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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Mortgage interest rates are benchmarked to the Fed rate. As the Fed has raised rates to try and slow inflation, mortgage rates have climbed. We may need to wait for inflation to get under control and the Fed start lowering rates to see relief on mortgage interest rates.
Historically since 2000, mortgage rates about 6% are the norm. 4% range was seen post-2009 and during COVID we saw the rates around 3% even. Not sure we’ll ever see those historically low rates again, but I suspect we’ll see 4-5% range down the road.
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