Lower mortgage rates should alleviate some pressure in the housing market, but it might take a while before they drop enough to provide any meaningful respite. The question right now isn’t if the Fed will lower borrowing costs — since Fed Chair Jerome Powell just gave his strongest signal of the first rate cut coming up — but rather by how much and how fast the Fed will cut rates. It’s not clear if the average, standard mortgage rate will drop below 6% this year.
A chronic lack of homes on the market is proving to be the US housing market’s key challenge because of its effect on prices. The two leading candidates for US president — Vice President Kamala Harris and former President Donald Trump — have proposed their own solutions to shore up housing supply. Trump has proposed using federal land to address the housing shortage, while Harris has called for the construction of 3 million new housing units.
Source: https://edition.cnn.com/2024/08/25/economy/housing-market-recovery