In a recent interview, Mortgage Bankers Association chief economist Mike Frantantoni said that home price growth is double the pace of income growth.
Frantantoni explained to CNBC that in addition to the relatively slow income growth, the record low of supply is the "major constraint" in the housing market. Though mortgage rates are nearly at four-year highs, Frantantoni says that this will not sway homebuyer demand. He adds that the pace of construction is not keeping up with demand, and home builders are not building fast enough.
This insatiable appetite for housing is happening even before the peak of the millennial generation reaches first-time homebuyer age, Fratantoni said. "There's just going to be this wave of housing demand hitting the economy over the next four to five years. And we think it's going to bolster steady growth over that time period," he said.