As mortgage rates continue to fall, Meredith Whitney Advisory Group CEO Meredith Whitney joins Market Domination Overtime to break down the overall state of the housing market (XLRE).

"I don't think rates are low enough to really get the market moving. I think rates need to come down by another 100 basis points to really spark interest. And then there's a two-step process which prices have to come down, by our estimates, at least 15%, to make housing, even the carrying cost of a mortgage tolerable," Whitney tells Yahoo Finance.

She notes that the carrying cost of a mortgage has doubled to 40% over the last four years, which is why many buyers have continued to sit on the sidelines. While easing rates will make it more affordable for buyers to enter the market, she believes the larger issue remains in housing prices, which can only be solved by adding more inventory. Once that part of the equation is addressed, the market will finally see some relief.

Whitney also highlights the "silver tsunami" effect, where the aging population begins to downsize their homes. She explains that more than 60% of homes are owned by people over the age of 50. "So there's a big issue, in terms of all the housing stock is owned by old people, and so it's harder for young people to get in. But, it's gotten increasingly expensive for these older people to stay in their homes because property taxes have gone up dramatically, as has homeowners insurance," she says, pointing to the "real strain" in the system.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Melanie Riehl