Reply to Feels like market is hitting a wall

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]There's no inventory. People with 2-4 percent rates are not gonna sell and take on an 8 percent rate mortgage unless they absolutely have to, and the rates are scaring away potential first-time buyers (unless they are rich enough to pay cash). The market is essentially frozen.[/quote]

Buyers can always refinance later....[/quote]

It is unlikely that rates will ever be below 3% again. We just got spoiled over the last few years. Looking at historic mortgage rates. 5% - 7% is not unreasonable.[/quote]

Back in 1995 "experts" were telling us "we'll never see rates lower than 7%...." [/quote]

No, they weren’t saying that. It wasn’t wasn’t discussed, because there was no expectation that rates would ever be that low. The only time in the 20th Century that rates were as low as they have been recently was during WWII (not even during most of the Great Depression).  In 1995, we were just thrilled that interest rates were in single digits.  The Fed has made a mess, and has learned their lesson. What about this chart makes you think that 3% rates are “normal?”

[img]https://www.getloans.com/blog/wp-content/uploads/2014/02/Screenshot-2023-02-26-at-10.25.10-AM.jpg[/img]

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