Highest Inflation in Decades, But Housing Has a Bigger Problem

Inflation is bad for interest rates and it’s at the highest levels in decades. But the housing market has a far bigger problem.
Actually, it’s not hard for a problem to become bigger than rates right now considering we’re still at levels that would have been record lows at any other time before covid.  Moreover, rising rates (within reason) might help to tap the breaks on what has been an unprecedented disparity between supply and demand.
That brings us to the big problem: supply–or rather, the lack thereof.  Lamenting the lack of housing inventory is a common refrain, but it’s never been more relevant.  The ill effects are increasingly visible as various home sales metrics have failed to advance for several months now.  This week’s update on New Home Sales provided the most recent example, falling moderately and undershooting expectations.  …(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed