Celebrity Real Estate Agent Warns ‘Perfect Storm’ of Housing Unaffordability Brewing

Celebrity real estate agent Mauricio Umansky is sounding the alarm over the “perfect storm of total unaffordability” brewing in the housing market. Umansky, founder and CEO of The Agency, responded to the state of the housing market following the 30-year fixed mortgage rate reaching 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 remarked during his appearance on “The Claman Countdown” Wednesday.

Umansky emphasized that we shouldn’t anticipate prices to decrease until we begin “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 stated.

When questioned about the reasons for the shortage of inventory in the housing market, Umansky pointed to a decrease in home building, reluctance from buyers and sellers to move due to existing home mortgages, and hedge funds purchasing single-family homes.

Unfortunately, with the government and the FED intervention, the pain is simply delayed. At this point in time, we are seeing 1 in 10 FHA borrowers delinquent on their mortgages and the forbearance programs are all ending.

I believe we will see a lot more pain in the real estate markets over the next 12-24 months. What are your thoughts?

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