"Homeowners Clinging to Low Mortgage Rates Impact Housing Markets"

Due to a significant gap between current fixed mortgage rates and the rising market rates, many American homeowners are finding themselves stuck in their homes, unable to move due to the financial implications. This "lock-in effect" has led to approximately 1.3 million fewer home sales in the U.S. and has disrupted the housing market. While those who secured low rates during the pandemic benefit, others are unable to relocate for better opportunities or open up homes for first-time buyers, contributing to market stagnation and rising prices.