The trend: Mortgage rates remain above 6%—significantly higher than their lows during the pandemic—and many buyers are holding off on purchases in hopes of rate reductions. Expected drops in mortgage rates and the growth of open banking will likely spur more demand over time.

How we got here: According to Yahoo Finance, many homeowners are locked into mortgages at lower rates, discouraging them from selling. This current combination of high housing demand and low supply has helped to raise prices. 

Fed Chair Jerome Powell said during a recent press conference that the lagging housing supply is a “long-term problem outside of the Fed’s control.”