Why does the supply of homes available for sale remain at historical lows?
Here is a chart depicting all outstanding mortgages categorized by their respective mortgage rates. A majority of borrowers are currently locked into mortgage rates that are significantly lower than the prevailing rates in the current market environment.
Even if mortgage rates were to decrease to 5%, a substantial portion of homeowners would continue to face a financial disincentive to consider moving.
This underscores the key reason why the housing supply remains at historically low levels.
To effectively stimulate an increase in supply and a potential decline in housing prices, an alternative catalyst or trigger is required.
Works Cited: https://twitter.com/KobeissiLetter