Lawrence Yun, chief economist at the National Association of Realtors, joins Yahoo Finance Live to discuss the red-hot housing market and how it's literally bringing some to tears.

Video Transcript

- Switching gears the US housing market is so stressful. It's leaving buyers in tears. So a new survey from Zillow-- finding that more than 65% of Gen Z buyers, 61% of millennial buyers report crying, at least, once during the homebuying journey.

Lawrence Yun-- he's the National Association of Realtors Chief Economist, joining us now. Lawrence, it's a known fact that when you go through, and you buy a house a lot of times, it can be very stressful. Is this consistent with what you're seeing? And I guess what can people do?

Because people that are out there looking to find houses, simply there just aren't enough. The supply is still not there.

LAWRENCE YUN: Yeah, yeah, when you have a multiple offer situation, and sometimes it is quite intense-- 30 offers. So by definition, you have only one winner and 29 losers who have to retry again. So it is a very high expenditure to begin with and to go through the process of rejection, re-submitting the contract. It can be quite frustrating.

For those who succeeded, I mean, they are seeing a immediate wealth gain based on the housing shortage and home price growth.

- And everyone's focused-- laser focused on the Fed right now, which is fighting inflation. And this relates to the longer term interest rates and, specifically, mortgage rates. I'm looking at the 30-year. It looks like it peaked out above 5%-- 5.3%. It has since ticked down to about 5.1%. What effect does this having on homebuyers?

LAWRENCE YUN: Well, maybe some good news for buyers. Because what we are seeing is a little more common away from the intense multiple offers to actually home sitting on the market for about a week or two weeks before finding a buyer. So the pool of eligible buyers have shrunk because of the rising mortgage rates.