Where are interest rates headed???

Fannie Mae, MBA, NAR released their predictions for where interest rates are headed. Historically when interest rates lower the demand for housing increases as more people enter the market driving home prices up.

When interest rates decrease, it becomes more affordable for potential homebuyers to finance their purchases. Lower interest rates lead to reduced monthly mortgage payments, which can attract more buyers into the market.

As interest rates decline, the demand for homes tends to increase, leading to higher home prices. This demand is fueled by the increased purchasing power of buyers due to lower monthly mortgage payments resulting from lower interest rates. Other factors may also influence home prices, such as the overall state of the economy, local market conditions, and housing supply. However, interest rates play a significant role in shaping the housing market trends.