Lower mortgage rates make monthly mortgage payments more affordable. In some places, cheaper than rent, per a Zillow analysis.
While housing overall continues to be unaffordable for most buyers,"this is as good as it gets," said Orphe Divounguy, senior economist at Zillow, as the market is generally seeing lower mortgage rates, more inventory and low buyer competition.'Mortgage rates will go by the way of the economy'Just because the Federal Reserve cut interest rates, it doesn't"necessarily guarantee mortgage rates will continue to fall," he said.
"If the economy shows signs of weakening ... rates will come down," Cohn said."If we see the opposite, and that the economy is chugging along and employment gets stronger, it's quite possible that rates will go up."On top of lower mortgage rates, a higher inventory of homes for sale makes the housing market more favorable for buyers, said Divounguy.to the National Association of Home Builders.