Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
722,032+456
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.99%0.00
MortgageReal Estate

Lack of housing inventory is weighing down the market

Single-family home sales disappoint

Mortgage applications are up, but home sales are down, and lower rates don’t seem to be making an impact.

What gives? Blame a lack of housing supply, according to a recent report from Capital Economics, which noted that “qualifying for a mortgage is of little help if you can’t find a home to buy.”

The economists reported that a fall in mortgage interest rates gave mortgage applications a boost earlier this year, but thanks to a lack of inventory, that did not translate into home sales.

Total single-family home sales declined 0.5% from May to June, which Capital Economics attributed to the lack of inventory.

The number of single-family homes for sale totaled 15.8 million in June – close to a record low, the report noted – while the homeowner vacancy rate hit a 40-year low in the second quarter of this year.

And, lest you think lower rates will give single-family sales a boost, the economists say so far, not so much.

Lower rates have, however, spurred some refi action, which have veered close to three-year highs since June.

But purchase applications did not enjoy the same effect, dropping in July to a four-month low, according to the report.

What will boost single-family sales is an increase in inventory, which Capital Economics seems to think is on the horizon.

“Tight market conditions should, however, support home building,” the report notes. “Indeed, the [National Association of Home Builder’s] measure of home building confidence has ticked up in recent months. Single-family building permits rose for a second month in a row in June, which suggest starts will see a further gain in July.”

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please