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Originally Posted by Philipd411

The mortgage interest rates are double the amount of what they were when I bought my home. When interest rates go down, home sales will go up.

They are a problem, but add complexity. Fewer homes went on the market in 2023 because many or most mortgaged buyers were sitting on 2.3 percent interest rates that are locked for the life of their loan. But as time has gone on some of these “owners” have decided to merge back into the selling market thereby increasing inventory. This is important to note as most are much better off to not pay off their mortgages with returns on invested funds being much better than an interest penalty on their 2.3 percent loan. The same banks that loaned funds at 2.3% are now paying 4.5% out on their CD rates.

The homes are now going on market at higher rates and it could add to foreclosure problems.