The Complex Relationship Between Mortgage Rates and Homeownership

Homeowners with ultralow mortgage rates are reluctant to sell their homes and forfeit their low rates, causing a shortage of supply in the housing market, especially for conventional starter homes. The Federal Reserve's interest rate hikes have also discouraged owners from putting their homes on the market. The decline in listings is unusual, even compared to before the pandemic. Striking a balance between supply and demand in the housing market is key to getting inflation under control, but experts say the logjam won't get better until rates simmer down, which probably won't happen until next year.