As noted yesterday...

August 2023 & 2024 = higher mortgage interest rates, fewer contracts signed

August 2022 = lower mortgage interest rates, higher contracts signed

What's the connection?

The higher the mortgage interest rates...

1.  The fewer buyers who can and are willing to buy.

...but also...

2.  The fewer sellers who are willing to sell and give up their (likely) low mortgage interest rate on their current home.

So... if or when or as mortgage interest rates decline... will we see higher levels of contract activity?

Maybe.  Maybe not.

As mortgage interest rates decline...

1.  More buyers will be able and willing to buy.

...but...

2.  Sellers might still be reluctant to sell, as lower mortgage interest rates won't necessarily be lower than their locked in mortgage interest rates.

Thus, I suspect as mortgage interest rates decline, we'll see the pool of would be buyers expanding more quickly than the pool of would be sellers.