The Complex Relationship Between Mortgage Rates and Housing Market Demand.

Homeowners who locked in historically low mortgage rates during the pandemic are feeling trapped as elevated mortgage rates make it financially unbearable to sell and buy something else. The so-called “lock-in effect” is constraining both the supply and demand sides of the housing market, sidelining move-up sellers and buyers across the nation. The burden of increased monthly mortgage payments is making it impossible for some homeowners to even consider moving up, leaving them feeling like prisoners in their own homes.