the interest rates are too low for the banks to loan much.
Once the rates rise, they will be handing out loans on the street corner.
Right now the banks are trying to drive up home values via restricting supply of new homes. Few loans == few new homes built.
Restrictions in supply == higher home prices.
The banks are colluding with the fed govt to drive up home values so that the mortgage derivatives the banks own will once again become worth something.
it is all about lowering rates and lending to corporations that will buy older homes and rent them out at extortionate rates, and then not lending to consumers so that the home builders cannot build much new supply.
The USA is and always has been run for the purposes of Capital.