Interest rates play a crucial role in the U.S. housing market for various reasons. For starters, they have a direct bearing on how much you end up paying to get a mortgage for purchasing a home. This, in turn, tends to have an impact on the value of homes. While low-interest rates usually result in increased demand and a rise in prices, the opposite holds as well. Anyone wondering when housing prices will drop again should realize that while there’s no way to tell for sure, reading existing signs may help determine where the market is headed.

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