- Mortgage applications have reached their lowest level since 1996, showing a fall in demand for new houses, while inventories have yet to recover since the COVID-19 pandemic, indicating a lack of supply.
- The combination of low demand and low supply could spell trouble for the housing market in the future.
- “When you go from record low mortgage rates to levels that we haven’t seen for almost 20 years, you destroy both the demand and supply,” Mohamed Aly El-Erian, an economist and chief economic advisor at Allianz, told CNBC in August.
The housing market could face even greater trouble in the future as both supply and demand slip following low mortgage rate applications and a tight supply of homes, according to multiple sources.
The number of mortgage applications declined 2.9% in the week ending Sept. 1 compared to the previous week, bringing it to the lowest level since 1996…
