Personally I think we have one more multi-month sub-5% spurt in us and then things will come back to 5.5-5.75% then a couple years down the road we get in the 6’s. At these low levels quarter point movements is a large percentage and changes purchasing power significantly.
Any recovery in housing will be muted, both transactional and pricing. Right now the issue with the market is supply, demand isn’t that bad but they can’t really stretch and buy so they are stuck in a narrow range. Either people start making more money (wage inflation) or prices drop and transaction rise. Otherwise we will just stagnate for a long time.
