How is it going to spread? Fixed rate mortgages have been going down since last summer, and variable rates will start going down next year. The dollar is weak which brings in more foreign buyers.
Ever hear of pushing on a string? When Japan's real estate bubble popped, they lowered their rates to zero which attracted exactly zero new demand for real estate.
Tt's not about mortgages, it's about afforability. When average incomes are $50,000 and homes cost $500,000 the math does not work.