Mortgage rates are NOT a tool to influence home prices. Interest rates can change demand in the short term but only until people realize they aren’t going back down.
If lower home prices are a goal, we need to build more. We need to fix state and local permit systems that deny or slow roll permits for legal structures. The only thing that gets approved in a timely way in this country is suburban sprawl.
If you keep building and prices go down, those actors leave the market with a loss in capital.
Building is a win win. Prices go down and rich people who have been fucking you lose money. They are only doing it because supply is constrained and it is east money.
If you keep building *faster than the market consumes…
Property owners do not -want- low property value. If they can afford to artificially increase demand, they will always do so. It is always in their best interests to do so.
Better solution: stop having kids. Seriously stop. For twenty years. The older people die off. Accidents happen. The population drops. Yet the amount of homes will stay the same. Property prices will inevitably drop.
Another bonus of less people, there’s less demand on all other resources.
Now after twenty years, start having kids normally again. Don’t try to play catch up. Just have kids normally. And yes I mean stop artificial insemination . Don’t try to boost the population. We will be right back where we started.
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