SVB collapse could bring down mortgage rates

 

Zillow's chief economist Skylar Olsen shared her predictions on how Silicon Valley Bank's (SVB) collapse could impact the housing industry.   SVB's collapse has put builders and agents in uncharted water, sending shockwaves through the industry.  Olsen believes the Feds will rethink further mortgage rate increases, which looked imminent a few weeks ago.  She added that home buyers have been very responsive to rate hikes, and for buyers from high-priced areas, a sustained rate drop could boost affordability.  A tech downturn will drive down home prices in markets such as San Franciso Bay Area and Seattle, where prices have remained high owing to high incomes and stock growth.  Olsen wrote that if SVB's troubles indicate broader issues, the looming recession could be deeper and longer lasting than expected.