Mortgage Rates Are Falling, Yet the Housing Market Remains Stagnant: Here’s Why.

The U.S. housing market is facing a significant affordability crisis, exacerbated by a phenomenon known as the “lock-in effect.” This refers to the hesitance of homeowners to sell their properties due to the ultralow mortgage rates they locked in during the COVID-19 pandemic, when the Federal Reserve cut interest rates and caused 30-year mortgage rates...