Could 5% Mortgage Rates Thaw Frozen Housing Market?
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If mortgage rates fall to 5%, it could "unfreeze" the housing market and allow prices to drop, according to DoubleLine Capital.
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Lower rates would bring more homeowners back to the market, increasing housing inventory.
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Others believe lower rates will simply increase buyer demand and keep prices high.
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Falling rates could spur new home construction that would help meet buyer demand.
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It's uncertain if rates will keep falling quickly, with most forecasts showing rates of 6-7% through 2024.