(Fox Business) Celebrity real estate agent Mauricio Umansky is sounding the alarm over the “perfect storm of total unaffordability” brewing in the housing market.
Mauricio Umansky, The Agency founder and CEO, reacted to the state of the housing market after the 30-year fixed mortgage rate hit its highest level since early December.
“We’ve got super high interest rates above 7%. Mortgage applications are as low as they’ve been since 1995. And then we’ve got no supply,” he said during his appearance on “The Claman Countdown” Wednesday.
Umansky said we should not expect to see prices drop until we start “seeing some pain and some supply.”
“Until we start seeing the pain and prices drop, I don’t see the government dropping interest rates. So, we really need to allow the markets to be markets, and for affordability to start happening so that the government starts dropping interest rates again,” he said.
When asked about the reasons behind the lack of inventory in the housing market, Umansky cited a decline in home building, buyers and sellers refusing to move due to their existing home mortgage and hedge funds buying single-family homes.
