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Many householders who’d otherwise be wanting to sell have hesitated to shake off the so-called golden handcuffs of mortgage charges as little as 2% or 3%. A groundbreaking $418 million settlement announced Friday by the highly effective National Association of Realtors is set to usher in probably the most sweeping reforms the American real estate market has seen in a century. It might dramatically drive down homebuyers’ costs — and push some real estate brokers out of business. A rule of thumb for mortgage rates is that customers are extra sensitive to adjustments in rates than to absolutely the degree. Housing demand in 2022 slowed so dramatically because rates rose dramatically. This implies that even if mortgage rates keep within the 7% vary, the place they are now, then homebuyer demand will actually enhance a bit.

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