Fed chairman Jerome Powell addressed these concerns in a press conference following the September rate cut announcement. He acknowledged that the housing market is “in part frozen,” with many homeowners hesitant to sell because they are locked in at lower mortgage rates. As rates decrease, more people may be willing to sell, potentially increasing market activity. However, he noted that each sale could also bring a new buyer into the market, so the impact on overall demand remains uncertain.

“So, it’s not obvious how much additional demand that would make,” he remarked, highlighting the complexity of predicting the housing market’s response to rate changes. Read more this topic . . .