Could Lower Interest Rates Tempt Homeowners to Sell and Ease Soaring Housing Costs?

• Lowering interest rates could incentivize homeowners to put houses on the market, increasing housing supply to meet demand • This could ease prices and bring down stubbornly high shelter inflation • Housing costs make up a third of CPI, so more supply could significantly impact inflation • Many homeowners have low, locked-in rates, discouraging them from selling • Closing the rate gap between new and old mortgages may tempt more people to list homes