/biz/ - Business & Finance

My neighbor sold their house last summer when rates were 5%. She priced it at 300k when it was worth 350k in order to get multiple offers, or 15% below market value. There were 42 offers on the property.

Real Estate is down 10-15%. If rates drop back to 5%, you'll start having buyers and bidding wars again, because everyone who sat on the sidelines for a year as the fed made it impossible to afford a home will be jumping at a rate that is "30% off". Banks are the winners here, because 5% on a 300k home is more profitable to them than 3% on a 350k home.