Tech

Do Mortgage Rates Drop in a Recession? This Realtor Has a Hot Take

By Savannah HeraldFebruary 28, 20264 Mins Read

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Key takeaways −

• Recessions often push investors into government bonds, raising bond prices and lowering yields tied to mortgage rates.
• Lower demand for mortgages during downturns and potential lender rate cuts can pressure mortgage rates downward.
• The Federal Reserve may cut short term rates, but it does not directly set mortgage rates, which follow the bond market.
• Home prices usually slow or dip modestly; 2008 was the exception, not the typical recession outcome.
• Your personal finances matter most; if stable, buying in a downturn can mean less competition and better deals.

In today’s news cycle, recession headlines come and go. Amid trade war anxieties, stock market roller-coaster rides and global conflict, no one is hoping for a major economic setback — except recessions have often created more favorable conditions for mortgage rates. 

Watch this: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More

02:31

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