US Housing Squeeze Keeps Rents High as 30-Year Mortgage Rate Dips to 7.41%

3 articles · Updated · Yahoo Finance · Oct 21

Mortgage applications fell 5.3% in the week ended Oct. 16 even after the average 30-year fixed rate eased to 7.41% from 7.50%, signaling lower borrowing costs have not revived demand.
Purchase applications dropped 7%, while housing starts slid 5.2% in September and builder confidence sank to its lowest since 2012, showing supply is slowing alongside weak buyer activity.
Grant Cardone and Peter Schiff both warned the tighter building pipeline could worsen the housing crunch, though Schiff blamed high rates and construction costs while Cardone said reduced building would push rents higher.
Cardone argued data-center construction will divert labor and materials for years; industry data partly supports that, with 49% of contractors on such projects reporting higher wage pressure, though housing impacts remain mostly localized so far.