Will this help the market or will sellers raise their price in direct ratio to lower rates?
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I’d laugh if I weren’t crying…
The entire goal of this low rate is to keep housing prices elevated, which is equivalent to sellers raising prices (if homes were priced correctly to begin with).
That is why I absolutely despise low rates! It causes people to overpay for things because they are only looking at the monthly payment.
Buyers NEVER benefit from lower rates, only sellers and existing owners who can refi into lower rates will benefit. Interest rates and prices move inversely, assuming the payment is kept constant.
Unfortunatley, too many people don’t understand this, so we get bubbles everywhere. 🙁
