Mark Palim, deputy chief economist at Fannie Mae, said he expected limited benefit from the recent cut in mortgage rates “given the current supply and affordability concerns.”
He added: “For the housing market at the current level of business, the lack of stocks of homes for sale and the ongoing supply chain bottlenecks faced by developers remain major constraints to buying.”
Mike Fratantoni, chief economist at the Mortgage Bankers’ Association, responded more positively to the data, noting that while private and multi-family businesses declined in July, single-family startups were nearly 12% higher than in 2020.
He added that more single-family homes are currently being built than at any time since 2007, and nearly 690,000 homes have been built, stating that this is “a positive sign given the surprisingly low stocks in the market,” predicting that the pace construction will continue to increase.
Holden Lewis, a housing and mortgage expert at NerdWallet, said he believed new home construction “will be back to normal in a month or two,” as builders get more building permits.