Investors’ Impact on Homeownership; Purchase Demand Rises; How Low Can Mortgage Rates Go?
Mortgage rates are on a tear . In the bigger picture, 2019 has been the best year in more than a decade. Only 2002 was arguably on the same level in terms of the move from peak to trough. If we include late 2018's higher rates the overall move is now bigger than the one seen in 2008/2009. While someone somewhere might be willing to draw a few parallels, 2019 is nothing like 2009. In other words, trade war fears and global growth concerns (which deserve most of the credit for the downward momentum in rates) are nothing like the financial crisis and Great Recession. Why, then, have the current motivations packed such a punch? The biggest reason for the size of 2019's move is the extent to which rates were arguably "too high" at the end of 2018. It's really that simple. There was a lot of defensiveness
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