A recent Fannie Mae Housing survey found that 8 out of 10 consumers were confident that rates would continue to fall, while just barely 1/3 of respondents felt rates would come down, while a close 28% felt rates would climb. 

But how does this help the real estate market? 

As I’ve written in past articles, the rate drop is only a part of the equation. Because inventory is still very low, prices have continued, albeit moderately, to climb, keeping many buyers out of the market because they simply can’t afford today’s home prices. 

Remember, we also have to be mindful of other home ownership expenses and we don’t see a drop in many of these; repair and maintenance services, replacement parts and yes, even grocery prices are playing a part. 

And I think Doug Duncan, Fannie Mae senior vice president and chief economist says it best and says what I’ve been saying: