The cause of the present housing crisis in the United States is supply and demand and is a similar principle phenomenon that investors see in the opening range at the start of the stock market trading day.
The basic principle of supply and demand is that the less of anything consumers want, the more they are ready to pay. When it comes to housing, the more they desire it, the larger the mortgage they will take out.
3. Declining Confidence
According to a February 2022 Fannie Mae survey, 70% of consumers believe now is the wrong time to buy a home. Only 43% of respondents believe home values will rise in the coming year, while 58% believe mortgage rates will increase.