The US has 140 million housing units, but only 5 million sold since interest rates rose. Most homeowners locked in low rates years ago, and 42% own outright. A housing bubble pop is unlikely when so few people need to sell.
Here's the thing, though, when someone uses the word bubble, I think it implies that it's going to pop. What we, I think, have to consider is that we've got about 140 million housing units in the country, and only about 5 million of those have transacted since the massive rate hikes. So 135 million people have mortgages at historically low rates with 28 years left. And of those 135 million, 42% of them have no mortgage at all. They're free and clear. So how do you get something to pop when it's not about the 5 million people that transacted since the rate hike, you know, just over a year. It's about the 135 million who are extremely comfortable.
