A 1% drop in mortgage rates could add about 5.5 million potential homebuyers, including 1.6 million renters, by improving affordability. For example, on a $450,000 loan, monthly payments could decrease by over $200, easing the burden for first-time buyers and current homeowners. Lower rates may boost home sales and inventory, with some metro areas seeing up to an 8% increase in qualifying households. Forecasts suggest rates could fall to around 6% in 2026, potentially revitalizing the housing market.