Mortgage Rates Drop, But Housing Affordability Remains a Challenge
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Mortgage rates have fallen substantially in recent weeks as inflation cools, providing some relief for struggling homebuyers.
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But housing affordability is still a major issue due to high home prices. Supply remains limited as well.
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Lower mortgage rates could further boost demand and put upward pressure on prices in the near-term.
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It's still cheaper to rent than buy in most major metropolitan areas right now.
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Homebuilders seem optimistic about demand, ramping up new construction, but face broader economic uncertainty.