Call it what you want – “golden handcuffs” or the “lock-in effect” – but the fact is that over half of American homeowners (52.5%) have a mortgage rate below 4%, well under the current rate of 6%+.
And these homeowners, whether they be empty-nesters, move-up buyers or those looking to relocate, are hesitant to give up their low rates which can cost them hundreds of dollars a month.
Finally, tight inventory keeps prices high, only exacerbating the affordability issue.
Many analysts don’t see mortgage rates falling below 6% any time soon.