These sub-10% rates aren’t as important as house prices.
The prices are too high for many buyers.
Particularly the marginal/aspirational and first time buyers. Those are the ones the make the extra volume.
Remember what you paid paid for your first house, what was your income?
Not too long ago, some folks paid cash for the house, then refied it and took monster cash out at sub 5% rates.
An essentially free house, and nearly free money.
Prices need to come down 40% to get back in line with folks income.
National Median $60K income means National Median $200K houses.
After moving to AZ just 4 years ago, my place has doubled...I'm no genius and I didn't plan this to happen and I'm blown away at what homes near ours go for. It's ridicules!
We look at the home my friend was raised in in S.CA, a 1950s tiny cookie cutter 1300 square foot home is going to 800k!! And it's 100 feet from a major 4 lane highway. No joke. This economic lunacy will all come to an end one day.
Agree with you - prices still way too high. Add in property tax increases, insurance uppers, utilities, and even maintenance. Continues to be cost prohibitive.