Economists warn that lower mortgage rates may not immediately lower home prices, despite the hope for relief in the housing market. Rates above 6.5% for the past three years have made homes unaffordable for many buyers. A significant rate drop could encourage more sellers to list their homes, potentially lowering prices. However, lower rates could also attract more buyers, increasing demand and bidding up prices. The impact of lower rates on supply and demand remains uncertain, with experts suggesting that rates below 6% could flood the market with buyers and increase annual home sales by 1 million.

Read more at Yahoo Finance: Why Lower Mortgage Rates May Not Make Buying a Home More Affordable