The nation is experiencing full employment and mortgage interest rates are historically low. Given the conditions, many people want to buy a house.
Zillow reports that the national unemployment rate was just 4.3 percent in May, and that the average interest rate on a 30-year, fixed-rate mortgage was only 4 percent. Over the last few decades, average mortgage rates are closer to 8 percent during periods of full employment.
It’s no wonder, then, that home buying demand is so high right now – in addition to expected demographic tailwinds as the enormous millennial generation ages into its prime home buying years, buying conditions themselves are mostly very favorable. Mostly, but for one small hurdle: The number of homes available for sale isn’t nearly enough to satisfy this huge home buying demand.
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