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With mortgage rates still sitting around 7 percent, many Americans are choosing to stay out of the housing market. Real estate expert Ronnie Matthews told KTRH that everything from pending sales to mortgage applications has fallen in the last 30 days. He says in order to jump-start the market, interest rates need to come down to around 5-6 percent. But he doesn't see that happening anytime soon.
"I don't personally think the Fed will cut rates before late summer... if even then," he says. For those rate cuts to happen, there will need to be serious signs that the economy is slowing. He also noted that the election may slow things down because the Fed doesn't like to make major changes too close to an election.
There is one upside, however. Matthews says if you're in the position to move and you can afford a house, there may be fewer competing offers on homes.