Real Estate with Ron and Susan
Real Estate: Home Prices or Interest Rates – Which Has More Impact on the Housing Market?
Lorton's Ron Kowalksi weighs in.
Since my last article, “Where Have All the Listings Gone?”, the real estate market continues to experience a severe shortage of homes available for sale. So, I started to think that perhaps sellers may be waiting for prices to increase. I suppose you can’t blame them. And I continue to hear that some buyers may be waiting for mortgage interest rates to go even lower. That may be a losing proposition since most experts believe rates will increase in the next few years. All real estate is local and every situation is different. But this slow-moving market sparked my curiosity to take a look at the relationship between home prices and mortgage interest rates. You might be surprised to see that interest rates have a greater impact on cost/…
