Why Falling Mortgage Rates Aren’t a Quick Fix for Frustrated Homebuyers

“Mortgage rates are at the lowest level in more than a year. For millions of Americans, it will take a lot more than that to make homeownership affordable.

Despite the recent drop, mortgage rates are unlikely to return to anywhere near the levels they were at before the Federal Reserve started to raise interest rates in early 2022. They might not move enough to make a huge difference soon, leaving home buyers to contend with record housing prices, limited inventory and renewed fears of a recession.

‘These things take time,’ said Peter Federico, chief executive of AGNC Investment, a real-estate investment trust. ‘Rates need to go down and stay down.'”