Experts Weigh In: When Mortgage Rates Drop, Will Home Prices Surge?

By ERIN FLYNN JAY It is being speculated that once interest rates drop, a number of buyers will jump into the housing market, causing another surge in prices. We spoke to some industry leaders to get their take. Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, said this is true. “Buyers who were priced out of the housing market with rates at nearly 7% will be able to purchase. Due to limited housing inventory, the housing market may see a rebound in multiple offers, which will put upward demand on housing prices,” said Lautz. She said a significant portion of homes are already selling at above the asking price. “Currently, there are…