Why Is House Hunting Getting Harder in the US?

As of late June 2023, the number of homes for sale has significantly decreased over the past 59 weeks. The prices of new home listings are down nearly 29% from the last week of June 2022. Last year, home prices were 45% above those of the pre-pandemic days. A mortgage is an agreement between an individual and the lender, where the lender has the right to take your property if you are unable to pay back the loan with interest. Currently, mortgage rates are up 7%. By comparison, most homeowners have mortgage rates below 4% (some even 3%). When mortgage rates are high, then the demand for homes decreases, and as a result, the prices of homes also go down. Pending sales, which are a measure of signed contracts on existing homes, were down 3% in May from April. Single-space housing has increased but is still below historical levels. However, for home builders, it is a different story. Most home builders in the US can set their own mortgage rates, and buy homes at down rates. Those individua...