DC Housing Bear

Mortgage Rates Fly Higher

The two posts above are right. But add on top of that higher risk premiums. It's not about "wanting" rates to go down or "hoping" for the housing crash to end. The housing crash will end when home prices return to the fundamentals. Interest rates are one factor, but they are still at historic lows. The issue isn't that interest rates are too high, the issue is that homes are still way too expensive. They won't stop dropping until regular people can afford them at interest rates much higher than 6.25%. Let's not pretend there's anything anyone can do to stop that. Let's ask ourselves what we can do to mitigate the fall out and remind ourselves that millions of renters and first-time home-buyers will BENEFIT from lower home prices.