Sellers Shying Out Of U.S. Market, Expert Reveals

Elevated mortgage rates are still keeping some homeowners from listing this spring, despite market conditions tipping in their favor, Gabriella Cruz-Martinez reported for Yahoo News.

Photo Insert: The lack of supply has worsened affordability for potential homebuyers as demand picks up.

According to Realtor.com, there were 21.3% fewer homes listed for sale in April compared with the same month last year, largely due to potential sellers feeling 'rate-trapped' by their current mortgage.

A separate study by Altos Research revealed that inventory of single-family homes for sale in the US. fell to 419,000 for the week ending May 8, during a period when listings typically inch up.

Said Redfin chief economist Daryl Fairweather on Twitter: "Homeowners are quiet quitting the housing market."

For homeowners, the decision to stay put doesn’t come as a surprise; high rates and home prices make, for many, the prospect of trading up unappealing — especially folks with low rates.

At the same time, the lack of supply has worsened affordability for potential homebuyers as demand picks up.

"Homeowners were able to lock in 3% mortgage rates during the pandemic and they don't want to give those up, especially if they have to move they’re going to be facing a 6.50% interest rate," Fairweather told Yahoo Finance Live.

"They're just bowing out," she added.

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