Housing Market Needs 'Dramatic Intervention,' Real Estate Expert Says

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Americans will continue to boycott the housing market even as mortgage rates become lower, Nick Gerli warns.

A real estate expert is warning that the current housing market needs a 'dramatic intervention.'Nick Gerli, the CEO of real estate data platform Reventure App, said that Americans will continue to boycott the housing market even as mortgage rates head lower.This week, the 30-year fixed-rate mortgage average was at 6.47 percent. That's a whopping 26 basis points below last week's average, marking the biggest drop since last December.

'They now have a pile-up of inventory, and historically high price cuts. And values are now starting to drop,' Gerli wrote.Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, echoed Gerli's sentiments, saying much of the excitement around lower interest rates won't fix the larger problem.

 

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