July 22, 2024

Why the housing market isn’t ready for a turnaround yet

Mortgage rates have fallen, with the 30-year fixed rate mortgage dropping to 6.61% and the 15-year FRM dropping to 5.93%. With mortgage rates coming off their highs, many on Wall Street are hopeful that the housing market can begin to turn around. Melissa Cohn, William Raveis Mortgage Regional Vice President joins Yahoo Finance to give insight into these movements and the future of the housing market going forward.

Cohn explains why home buying may still be slow: “I think people are taking their time, especially with the sense that mortgage rates are going to continue to come down over the course of the next two years. There’s no urgency because we haven’t seen the bottom yet.” She continues on to say “I think when mortgage rates come down to like a 5.5%, then people will start to think about perhaps it’s time to sell…We also have to remember the people move through life cycles. People get married, they have children, they get divorced, their kids move out of the house. people die, so those people are always in the real estate market, but there’s just not enough inventory, because people don’t want to give up the low rates. “

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

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