"Homebuyers' Desire for Lower Mortgage Rates Overlooks the Dire Consequences of a Recession"

A Credit Karma study reveals that nearly two-thirds of potential homebuyers in the US would welcome a recession if it meant lower mortgage rates, as the current housing market is keeping homeownership out of reach for many Americans. However, while a recession may lead to lower mortgage rates, it may not necessarily increase the availability of homes for sale, which has been low for a while. Additionally, during a recession, employment typically goes through a slump, potentially leading to more layoffs and pay cuts, making it difficult for some buyers to afford or secure a mortgage. Some buyers are getting creative by taking on side gigs, restricting spending, or considering alternative real estate investment options.