A lower mortgage rate can help boost sales, but that’s just part of the puzzle, Realtor.com reports.
“According to an index of housing affordability maintained by the National Association of Realtors, affordability in July sank to the lowest level since 2008,” the article says, adding that using the same measure, “affordability peaked between 2011 and 2013. Not only were sales of both new and existing homes lower then, but a large chunk of existing sales were to investors rather than individuals.”
This means raising the rates back up does not necessarily mean the housing recovery will be sabotaged.
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