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Last Updated: Sep 11, 2025, 9:15 PM EDT
2 days ago
How Much Will Falling Rates Help the Housing Market?
Mortgage rates fell this week to their lowest level in nearly a year due to widespread expectations that the Federal Reserve will cut rates next week.
How the move in rates could help the housing market: More home buyers could be enticed to jump into the market, especially if rates keep declining and fall below 6%. “I expect we’ll be able to get some people off the sidelines,” said Neil Bader, national director of retail mortgage lending at the Federal Savings Bank.
There are some doubters though: Even with lower rates, the market is still far from affordable. Near-record home prices and other ballooning costs are keeping many potential home buyers at bay. “There’s no mortgage rate in the foreseeable future that would change the affordability scenario significantly,” said Mark Fleming, chief economist at First American Financial, a title insurance company.
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