Mortgage Rates Won’t Fall Fall AFTER AFTS AMID AFFORDABILITY WOES: MS

It hasn’t been a good for sample look to purchase a home, and the enduring combo of high prices and elevated rates has brought the housing market to a standstill.

While the talk of rentes restarting this month has spurred optimism for the markets and the broader Economy, One Top Bank is warning that a Move by the fed at next weky meeting won’t do Much to bring down home-loan rates.

In august, date from the National Association of Realtors Hinted that Housing Market Conditions Might Finally Be Starting to Ease, As Existing Home Sales Inched 2% Month Over Month. Meanwhile, Mortgage Rates in the Last Week Have Tumble to their Lowest Level in 11 Months, Driving a New Wave of Financing Activity.

But Acciting to Morgan Stanley, Aspiring Budes Shouldn’t Expect The September Rate Cuts to Lead to Vastly Improve the Landscape for Buying a Bome.

In a September 8 Note, Global Director of Research Katy Huberty Discussed Why the Bank Believes The Highly Anticipated Cuts Will Be Insufficient for Driving Down Rates and Accelerate BUYER ACTIVITY.

She Said that while Morgan Stanley’s Analysts predicts that Rates Will Be Lowered 150 Basis Points by the End of 2026, ITS USSING MARKETS STILLS IT AS UNLICKY TO LOWER MORTGAGE RATES.

“They do not expert the belly of the Treasury Yield Curve – which is Correled with Mortgages – to move in response to that path of fed cuts,” huberty said.

In addition, the analyst notd that the “Lock-in Effect” will be anssue, this if RATE CUTS WERE TO BORROWING COSTS DOWN FOR HOME BUYERS. More than 60% of Outstanding Mortgages Carry a Rate of Lless Than 4.5%.

“HAVE A 200BPS DECREASE IN MORGAGE RATES WOULD STILL OVER HALF OF THE OUTSTANDING MORTGAGE MARKET AT RATES LOWER THOSE ON NEW MORGAGES.”