stewart miller said the effect of high prices and higher interest rates are causing buyers to, quote, pause and reconsider s jb holmes ceo said sales rates are are moderating from the recent exceptional levels. the difference in kb is they have a bill to order model so, baers can work to reduce costs and they're not left with a huge back log of unsold homes. sales fell again in may. those numbers are based on closing. those are contracts signed in april when rates were lower. weakness is affordability and lack of supply the number of homes on the market is increasing, up from 27% from a year ago. but it's still half of prepandemic levels mortgage rates pulled back the average rate on the 30-year fixed at 5.885 still nearly double what it was six months ago and combined with inflation, it's making it hard to afford just about everything and that will likely continue to cool the market. we did see the jump in adjustable rate loans because they do offer lower rates. >> and the most stunning fact about the housing industry remains the one you and i talk about, the pe ratio. to see 2.5 and

little sticker shock, a little bit of a pause, and there will be some reconciliation >> that was stewart millerhis hour on "squawk on the street." the housing market, of course, and cooling, after a very hot pandemic fueled stretch. joining us to discuss, red fin ceo glen, always good to have you. give me your take on what you heard from mr. miller? you agree with him >> he nailed it. i agree with him 100%. interest rates have increased at an unprecedented rate and that's causing buyers to pull back. >> simple as that. how long does this continue, glenn? >> well, there are some profound demographic shifts that are in favor of the housing market. millennials have come of home buying age people can work anywhere so at some point, i expect people to continue to buy homes. obviously, they're still doing that now, but i thing it will come back to a higher rate it just might take a while it might take six months it might take 18 months. nobody can guess where the economy is go, and consumer sentiment is at an all-time low. >> yeah, you recently unfortunately had to lay off some employees as well, i t