On The Market What Happens When Rates REALLY Drop? Probably Not What You Think w/Logan Mohtashami
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Sep 16, 2024 
Logan Mohtashami, a top housing market analyst, shares his insights on the current state of the housing market. He discusses the surprising possibility of a reversal in increasing housing inventory as mortgage rates drop. Logan also challenges the conventional wisdom that lower rates automatically mean higher home prices. He emphasizes the importance of monitoring labor market trends in predicting mortgage rate movements and highlights the ongoing affordability struggles for homebuyers, despite recent improvements in the market.
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Baby Pivot Housing Market
- The current housing market is a "baby pivot" stage, confusing due to the new home sales sector's ability to grow in a sub-6% mortgage market.
- Existing home sales haven't been tested in this environment, creating a bifurcated market.
Importance of Home Sales Volume
- Existing home sales volume is crucial because it reflects the health of the housing market and impacts related industries.
- Lower sales lead to job losses and reduced wages in the real estate sector.
Healthier Housing Market with Growing Inventory
- Inventory growth is positive for the housing market, providing more choices for buyers.
- The market is healthier with increased inventory, preventing uncontrolled price escalation if rates fall.