Why Housing Trends Could Keep U.S. Interest Rate Suppressed

Why Housing Trends Could Keep U.S. Interest Rate Suppressed
AP Photo/Mike Groll

If we're all downsizing, who's upsizing?

That question should be critical to aging and retiring baby boomers whose main “asset” is the equity in their homes. If current demographic trends remain in place -- and there is not a shred of evidence that they won't -- then we are facing a generation of subdued home demand even as retirees will be looking to sell. We're not even considering the impact of what “normalized” interest rates means for mortgage borrowing.

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