Mark Fleming Fleming: “Rising mortgage rates next year and the continued reluctance of existing homeowners to sell will create supply constraints that will be challenging for potential home buyers next spring.”

SANTA ANA, CA—A low supply of housing stock due to homeowners’ hesitation to sell and increasing mortgage rates has been keeping the market as a whole below its potential, according to a recent report from First American Financial Corp. The firm’s chief economist Mark Fleming tells, “It’s likely that the market will continue to underperform its potential while these conditions exist.”