RE: LeoThread 2025-08-02 16:53
You are viewing a single comment's thread:
The key to reducing mortgage rates lies in decreasing the long end of the yield curve.
For this to occur, asset prices need to fall, not just the short-term rates.
0
0
0.000
Lower short-term rates can actually increase inflation, which might raise the long end.
To achieve a more affordable housing market, allowing asset prices to decrease is essential.
Until asset prices drop, mortgage rates are unlikely to improve sustainably.
Many will argue that lower rates will make housing more affordable, but the truth is, it often leads to the opposite effect.
It could take about 6-12 months for people to come to terms with this reality. During this period, common misconceptions will persist until the proof becomes irrefutable.