First American Chief Economist Mark Fleming was interviewed yesterday on CNBC and explained the link between rising rates, housing supply and affordability.
“One of the main reasons we see such a short supply of inventory is that many existing homeowners, who are the largest supplier of homes to the market, are on a 3.5 percent or 4.5 percent mortgage. They’re rate-locked in, so they have a disincentive to move.”
Mark also commented on whether today’s market is better for buyers or sellers.
“It’s a much better time to be a seller than a buyer. Inventories are so tight at the moment that it is hard to find something to buy, even if you wanted to, so that means prices will continue to rise.”
