U.S. homeowners are hanging around their homes a little longer as the vacancy rate takes a slip.
"The rate was down from 1.7% a year earlier and 1.6% in the fourth quarter, the U.S. Census Bureau said in a report. The vacancy rate is the proportion of the non-vacation-home inventory that is vacant and for sale," according to National Mortgage News.
"The declining vacancy rate only adds to concerns about record low housing supplies, Genworth Mortgage Insurance Chief Economist Tian Liu said."
This year, low inventory has plagued the housing market making it difficult for both buyers, real estate professionals and mortgage professionals. Folks aren't able to find homes within their price range as low inventory has driven up prices through competition.
In some areas, first-time homebuyers are being scared off by high priced homes coupled with rising mortgage rates. With the vacancy rate slipping, competition will be increasing even more and sales may also suffer as well.
"There were 1.67 million U.S. homes for sale in March, down 7.2% from a year earlier and the lowest for that month in data going back to 1999, according to the National Association of Realtors," reported NMN.
To learn more about the vacancy rate decline and the domino effect it can have on the mortgage and real estate industry, click on the image above.