“If a potential buyer believes that housing prices may fall more, then mortgage rates of 3-5 percent won’t attract home buyers. Rates could even drop to zero and it might not outweigh consumers’ negative perceptions”
Or, more likely, consumers still couldn’t act on such low rates if they can’t sell their existing homes. This is is the fact the interest rate geeks don’t seem to get; rates alone don’t govern consumer behavior, some homeowners are frozen out of the market by circumstances…
I believe you’re right, the interest rates are now at historic lows with little to no movement in home sales in San Diego…..Circumstances? Maybe it’s lender guidlines such as owner occupancy and credit?
San Diego home loans are harder to get, but they are there for most who have decent credit.
Let’s hope we see some better numbers for the housing market.