Homebuyers react more to changes in mortgage rates than actual rates, Compass CEO says

• Buyers react more to the change in mortgage rates than the actual rates themselves, Compass CEO Robert Reffkin said.
• The rate relief comes as inventory is loosening up, which is an encouraging sign for buyers.
• "A key question is will the Fed lower rates in the March meeting before the spring market, or in the May meeting afterwards."

Mortgage rates have tumbled, bringing more homebuyers off the sidelines, but they are still high compared to pandemic-era levels.

What gives?

"We see over cycles that buyers react more to the change in mortgage rates, more than the actual mortgage rate itself," Compass CEO Robert Reffkin said on CNBC on Tuesday. "It suggests that next year will be a very good year."