ITR Economics economist Lauren Saidel-Baker joins Market Domination Hosts Julie Hyman and Josh Lipton to examine the housing market as interest rates ease.

The Federal Reserve cutting rates “will help” stimulate the real estate market, but “is not going to solve our housing problem,” Saidel-Baker tells Yahoo Finance. “We have been essentially under-building homes in this country for more than a decade now. New home starts have not kept pace with household formation. So there is a lot of demand.”

“The big pressure in housing is affordability…Prices are much higher. Interest rates are much higher. They're not going back to those near zero levels,” Saidel-Baker says, adding, “I just don't see a quick fix solution for this housing problem.”

Ahead of the November election, the economist says that housing cannot be solved through policy alone. “It's very hard to say that a policy prescription can fix a market that is imbalanced.” She explains, given the local nature of real estate markets, “I don't think any one policy could just fix this across the country,” but notes that “ongoing strength in the consumer” with wages rising faster than inflation could help people “weather this affordability hit,” though “it's going to remain a challenge.”

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This post was written by Naomi Buchanan.