Skip to main content

Are lower mortgage rates supporting housing demand?

News of mortgage rates falling to fresh lows may have become an almost weekly occurrence, but there’s relatively little evidence that this is translating into stronger housing demand among mortgage dependent buyers. The underlying improvement in sales activity remains heavily dependent on investors and cash buyers, who are attracted to housing in part because of low yields elsewhere.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access