Warren Buffett’s Berkshire Hathaway and Zillow say mortgage rates can’t fall enough for Americans to afford a home

Core Insights - Mortgage rates have remained high, currently at 6.19%, significantly above the sub-3% rates during the pandemic, making homeownership less affordable for many Americans [1][2] - Economists suggest that mortgage rates would need to drop to 4.43% for homes to feel affordable again, but such a decline is deemed unrealistic [3] - The reluctance of homeowners to sell due to low locked-in mortgage rates is creating a "golden handcuffs" effect, further constraining the housing market [4] Housing Market Dynamics - The unsold completed inventory of homebuilders has reached a 16-year high, indicating a significant supply issue in the housing market [5] - Active listings have increased to 3.06 million, a 4.9% rise from the previous year, suggesting a growing inventory problem [5] - Homes are remaining on the market nearly three weeks longer than last year, indicating sellers are still anchored to pandemic-era prices despite market conditions [6]