Mortgage Rate Trends - Homebuilders are offering mortgage rate buy downs, bringing rates down to as low as 1%-3%, levels not seen since the COVID era [1] - Buyers are concerned about the economy and their jobs, requiring more aggressive rate reductions to attract their attention [2] - Fixed rates below 4% for 30 years are emerging, with one instance at 399% [2] - Some builders are offering teaser rates, such as 099% for the first year, 199% for the second year, and 299% for the third year [3] Housing Market Dynamics - The price of a typical new home is now cheaper than an existing home, reversing the typical 16% premium [4] - Existing homes have become more attractive due to falling mortgage rates (close to 6%) and increased listings, making it harder to sell new homes [6] - New home sales require incentives like mortgage rate buy downs to attract buyers [5]

What would happen if the the US adopted a formal policy of trying to keep interest rates low? Look to Japan, says @allisonschrager, which now has an economy full of zombie companies (via @opinion) https://t.co/NEz8EU760W ...