Low Mortgage Demand Indicates Impact on Housing Prices

The podcast discusses the significance of low mortgage demand, comparing it to levels not seen since 1996. Despite the housing market being in a vulnerable state, with fundamentals not aligning, the low demand reflects how a slight increase in supply can have a dramatic effect on prices. The speaker reflects on past experiences, recalling a time of remarkably low demand when buyers were scarce, and even foreclosed properties were available at significantly reduced prices. Today's demand is even lower, indicating that additional supply as small as a few hundred thousand homes could lead to declining prices.