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I think this is complex. Rates being high is also restraining sellers so if rates drop that could create a lot more inventory. However the rates that have existed for the past 5 years are an anomaly historically. I’m not sure that we will ever see rates below 5 again. That said, there is an imbalance between rantal rates and home costs. If you can rent for $3k or buy for $6k which is better long term? You can invest the extra $3k and have $4M in 30 years. The problem is that the rent will increase over time so after some point in the future, rent will be more than the house payment.
It depends on so many factors.
At this point interest rate 5 looks much better