She also believes that a rate drop below 6% would fuel a surge in refinances. But most importantly, it would add to housing inventory in markets where available homes are limited.
“It’s kind of that middle ground where we would see enough of a decrease that would give a lot of people a great refi opportunity for them to start saving money that they could put back into the economy,” Welch said. “But we would also see an opportunity where people would get off that fear of listing their home and buying a new home. It would be more comfortable than the 6s, 7s, and 8s. Those are scary.”
Welch notes that it’s not just mortgages that would add money to the economy, but also all the products and services that come with buying a house.
“When someone buys a house, guess what else they buy?” she said. “They use a million services. It would create a healthy circle of all the services and products being used. If no one is moving, and no one is selling, and no one is buying, that’s not happening. I’m not saying that nobody’s buying, but it’s just not as active because of that fear.”
Tariffs adding to hesitation
Because the housing market is so tight in Maine, Welch hasn’t seen a reduction of Canadian buyers in her market. However, she has seen fewer Canadian visitors in the area. The combination of tariffs and ill-will toward the United States, stemming from President Trump’s annexation threats, has left many Canadians unwilling to cross the border.