Quote:
Originally Posted by Qwerty
My assumption is that the gov't will drop rates when all the COVID 5 year fixed come up for renewal in 2024/2025 to avoid a housing collapse. I think if there are drops they come in 2024/2025 at the earliest. Who knows though, I seem to be wrong more often then not!
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I see them dropping earlier than that. How quickly they drop will depend on how quickly the inflation data improves, which, as of right now, is improving faster than expected.
Plus no government wants to be in power, or worse up for election, when you have a bad combo of high housing costs and high interest rates.
With current rates of 4.2ish%, you likely won't see a total collapse in the housing market, just a lot of pissed off voters stretching their budgets. I see rates gradually dropping to the 3ish% range over the next 2-3 years.
That being said, I have inherent bias, as I'm one of those people who signed a massive covid mortgage for a super cheap rate.