The Tight Housing Market: Trapped Homeowners and Dropping Equity.

91.8% of US homeowners with mortgages have an interest rate below 6%, which is just below the record high of 92.9% reached in 2022. Many homeowners are unwilling to part with lower rates they secured prior to the spike, keeping inventory tight. With mortgage rates still high and potentially set to rise further, that could mean fewer and fewer current homeowners will opt to sell and re-enter the market. And without additional inventory, the bubble in US home prices could keep growing.