Mortgage rates trend lower, but is it enough for homebuyers?

Mortgage rates ticked higher this week, however, they have been trending downward over the last year.

William Raveis Mortgage regional vice president Melissa Cohn joins Wealth! to give insight into the downtrend of mortgage rates and what investors and home buyers should keep in mind moving forward.

Cohn elaborates on what it will take to get people back to the housing market in droves: “If we want to see the floodgates open, I would say that the rate has to go down to 5.5%. But the fact that we’re down to 6.5% or just below that, or if you think about it, we were not too long ago hovering in the mid-sevens. I think that every quarter percent cut in interest rates will sort of bring that next level or next group of buyers back into the marketplace.”

Commenting on Vice President Kamla Harris’s recent proposal to help first-time home buyers, Cohn says: “I think it’s a wonderful thing that any grant programs that people can get in order to help them with down payments or with closing costs and especially with the new NAR [National Association of Realtors] ruling, if they potentially would have to pay the buyer’s brokers commissions as well, whatever we can do in order to get people into homes is the right thing to do.”

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino