Mortgage Rates Dropping

[Mitchell Roadruck]

Seeing a big drop in rates (1% over the last few weeks). In your opinion could this steep drop lead to an increase in new purchases leading to higher inflation, in turn raising rates?

In short, if you had to guess what is in store for rates in the next 6 months and how will that impact prices?

[Aaron Breckenridge]

It sounds like the Fed is willing to slow raising rates now that inflation has gone down for 5ish months. Inflation isn't necessarily caused by new purchases, a large component of it is a psychological expectation of higher prices.

As far as new purchases leading to higher inflation, I barely even saw a slowdown in my market (North Dallas) and very few price cuts. I think the only thing that will really impact the market here is more tech layoffs, which could still happen.

My prediction: in about a month or two, they'll say we just emerged from a recession that was never declared.