Part 3/5:
Looking back at recessions since the 1980s, mortgage rates have consistently decreased, averaging a drop of approximately 1.8 percentage points over each recession period. This decline makes borrowing more affordable for consumers, thereby encouraging home purchases and stimulating market activity.
Persistence of Lower Mortgage Rates Post-Recession
An intriguing aspect of mortgage rates during recession periods is their tendency to continue falling even after the recession is technically over. This phenomenon occurs because monetary policy adjustments and market adjustments take time to fully impact the economy. As a result, mortgage rates often remain low, providing favorable borrowing conditions that support a housing recovery.