Scott Sambucci

Why Are Mortgage Rates So High?

With mortgage rates already at historical lows, is dropping rates less than 100 basis points really going to spur demand? Probably not. In talking with hundreds of agents through my work, most agents will tell you that buyers are telling them - "I'm waiting for the bottom" not "Mortgage rates are too high."

I think you statement - "Long term recovery will only get started when homes are priced at values supported by mortgage rates sustainable over the next 5 to 10 years.." certainly supports this.

The price of money isn't the issue - it's the price of goods (homes) that is keeping buyers out. I wrote a bit about this myself last week as related to John Taylor's assailing of the Fed regarding lower interest rates: scottsambucci.blogspot...