---
title: Historically Low Interest Rates Haven’t Bolstered the Housing Market
description: The recent sharp drop in interest rates hasn’t had a positive impact on the housing market.
---

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# [Historically Low Interest Rates Haven’t Bolstered the Housing Market](https://www.nationalinvestornetwork.com/financials/historically-low-interest-rates-havent-bolstered-the-housing-market)

 Written by [Jeff Mindham](https://www.nationalinvestornetwork.com/financials/author/jeff-mindham) | Aug 6, 2019 12:45:24 AM

The recent sharp drop in interest rates – 3.75% for a 30-year fixed mortgage - hasn’t had a positive impact on the housing market. Existing home sales are down 2% from the same period a year ago.

The [primary cause for the decline](https://www.nytimes.com/2019/08/01/business/interest-rates-housing-market.html?action=click&module=Top%20Stories&pgtype=Homepage) is due to the fact that home prices continue to rise, which are up 60% since 2009 compared to household earnings, which only increased by 24%. 

John Sim, an analyst at JPMorgan Chase who covers housing and mortgages noted, “Even at this current level of rates, its pretty unaffordable to most renters”.

[View full post](https://www.nationalinvestornetwork.com/financials/historically-low-interest-rates-havent-bolstered-the-housing-market)

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