Low interest rates cause housing shortage in Pueblo

PUEBLO, Colo. (KRDO) -- The housing market in Pueblo is experiencing a housing shortage due to low interest rates.

According to The Pueblo Chieftain, COVID-19 triggered the drop in interest rates, allowing people easier access to purchasing a home.

Economists say the housing shortage will stick around for awhile but house hunting may slow down as families settle down until the end of the school year.

“Right now, the long-term, 30-year mortgage rates are very, very low. They spiked in April to just above 3% but now they are below it, so that is very favorable financing,” Kevin Duncan, a Colorado State University economics professor said.