"Surging Mortgage Rates Reshape Housing Market: 5 Key Ways"

Surging mortgage rates have reshaped the housing market, with sales of existing homes declining while new homes are selling fast. The higher interest rates have priced out some buyers, leading to a decrease in sales of existing homes. Many sellers are also reluctant to move due to their lower interest rate mortgages, constraining the supply of homes. Despite fewer existing homes changing hands, bidding wars and high prices persist. With limited options, more buyers are turning to new construction, where sales have increased. Builders have been offering discounts and designing smaller houses to keep prices in check.