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[quote=Anonymous][quote=Anonymous]While I hope mortgage rates go down so I can refinance, I don't think they will, despite the President doing everything he can to get the Fed to cut rates.

This because mortgage rates are tied more directly to the rate for 10-year T-Bills, which is set by the market, than to the short-term rate, which is set by the Fed.

I suppose the Fed could implement some sort of bond buying scheme to influence the 10 year T-Bill rate, like they've done in the recent past, or some other type of direct intervention into the mortgage market, but I suspect that is unlikely now because it will cause inflation.

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My guess as an armchair economist is that demand for housing will weaken due to a weaker economy. If demand for housing is low, I don't see why rates will keep going up.

The biggest issue with those 65+ holding on to their homes. There are less and less cheaper alternatives when you retire. When these people do the math they realize they are better off staying put. And apt of them live in smaller and cheaper to maintain homes.

The other issue is family formation. People simply aren't getting married and having kids. Fertility rate is declining.

In my opinion around 2028, we will start seeing big drops in home prices. And further we will have an aging population ready to sell but less people willing to buy.

If you want to buy a house today buy a basic cheap house and view it as a shelter. It's baked into our mind as Americans that home prices will go up forever and it's a great investment vehicle. I don't know but with an aging population and declining fertility I would love for someone who is a real economist convince me that demand for housing will keep going up along with home values. Twh floor is yours...[/quote]

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