The Battle for Affordable Housing: Middle-Class Buyers Squeezed Out

The U.S. housing market is facing a battle between deteriorated affordability caused by a spike in mortgage rates and the "lock-in effect" that has led to a scarcity of existing inventory. The surge in mortgage rates has made homeownership less affordable, resulting in a slowdown in home sales. At the same time, homeowners are reluctant to sell due to the fear of higher mortgage rates, leading to a lack of available homes on the market. This combination of factors has caused home prices to rise. While some experts believe that national house prices will continue to rise due to the lack of inventory, others anticipate that housing affordability will improve over the next few years, leading to a slow decline in prices.