Housing Market Stuck: Buyers Ready, Sellers Few.

The US housing market is experiencing a gridlock as home buyers are eager but sellers are scarce, causing a mismatch in supply and demand. Homeowners with low-rate mortgages are delaying the decision to sell until market conditions change, leading to a lack of inventory. The stalemate has mired the housing market, with sales of existing homes down 22% from the year before. To get sellers more motivated again, rates will have to fall to the "magic mortgage rate" of 5.5%. The market may thaw as demand from frustrated buyers is met by home builders, which historically created first-time home opportunities and move-up opportunities.