While the so-called mortgage “lock-in” effect has seen many homeowners decide to stay in place because of their current low mortgage rate, rather than list their property and face much higher borrowing costs with a new mortgage, that trend could be easing.
NAR’s chief economist Lawrence Yun told reporters after the release of the latest data that some homeowners appeared to be ready to leave those low-rate mortgages and move elsewhere – with inventory across the US having jumped by nearly 20%.
A slight jump in inventory, though, was not enough to significantly impact the overall supply shortage facing the US housing market. July’s 1.33 million available homes remained well below inventory levels from before the pandemic, when more than 1.9 million properties were listed across the country.
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Source: mpamag.com